PPL Global could sell CGE stake in March

Bnamericas Published: Friday, February 27, 2004
US company PPL Global could sell its 8.71% stake in Chilean distributor CGE in March if market conditions are attractive, PPL Global's communications manager in Chile, Rodrigo Silva, told BNamericas. PPL Global "has decided to explore the opportunities to sell its direct and indirect shares in CGE," the company said in a statement. "PPL has taken this decision within the framework of the reorganization of its international minority investments," the statement quoted PPL's CEO for Latin America, Ivan Diaz Molina, as saying. PPL has a 7.38% direct stake in CGE and a 1.33% indirect stake through its 12.5% stake in local company Indiver. PPL could receive up to US$154mn for its CGE stake based on the current share price of 2,800 pesos per CGE share and 185 pesos per Indiver share, newspaper Estrategia reported. PPL paid US$140mn for the shares in 2000 and is not likely to sell them unless it can obtain at least that amount, the paper reported. Local pension funds (AFPs) and insurance companies, rather than CGE itself or other power companies, could be interested in buying the shares, the paper quoted analysts as saying. PPL Global will now focus its attention on its majority-owned distribution companies in Latin America and the UK. In Chile, PPL controls distributor Emel, which has 526,000 clients between Regions I and VIII. "Emel is an investment highly valued by PPL, not just because of the quality of its assets but also the stability and perspectives for economic growth that Chile offers," Diaz Molina said.

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