The promise to streamline and simplify the Enel Group’s structure has been kept. An ambitious and necessary promise for a company as complex as ours, made by our CEO and General Manager Francesco Starace and the Enel management team presenting the last Three-year Strategic Plan. Another important piece of the puzzle fell into place on 25 March 2018 with the successful completion of the tender offer launched by Enel Chile for all the shares of its subsidiary Enel Generación Chile.
En route to economic and sustainable value
The tender offer was accepted by shareholders who owned around 33.6% of Enel Generación Chile’s share capital, thereby allowing Enel Chile to increase its stake in Enel Generación Chile to 93.55%.
The operation was part of the Group Simplification process, one of the five pillars of the 2018-2020 Strategic Plan presented in November 2017. Enel will continue in this direction to streamline the Group’s organisation.
The company will continue reducing the number of its operating companies in South America, aiming to have under 30 in the region by 2020, compared with 53 at the end of 2017.
Enel Chile is the Enel Group’s subsidiary utility: it is the largest private electricity company in Chile in terms of installed capacity in the generation sector and customer numbers in the distribution sector.
“The completion of this reorganisation in Chile is another important step forward in the implementation of the Group’s strategy to simplify its holdings in Latin America, a region where we have successfully focused our efforts on growth over the last few years,” said Enel CEO and General Manager Francesco Starace.
“Enel Chile now has a better corporate structure that ensures coverage of the entire value chain. This positioning fits in well with the rapid technological evolution, giving the Group momentum as it takes on the future developments of the energy sector in this great Country.”
Francesco Starace, CEO and General Manager, Enel
On 25 March 2018, when the notice regarding the outcome of the Offer was published, the acceptance of Enel Chile’s Offer by participating minority shareholders of Enel Generación Chile took effect.
The amendment of the bylaws of Enel Generación Chile that removed the limits on share ownership in the company, which previously had not permitted any single shareholder to own more than 65% of the company’s share capital, also took effect on 25 March 2018.
The merger by incorporation of renewables company Enel Green Power Latin America S.A. into Enel Chile and the capital increase of the latter to serve the merger will take effect as from 2 April 2018.
The bell is still ringing
On 1 December 2016, the merger of Enersis Américas, Endesa Américas and Chilectra Américas that produced the new company, Enel Américas, was also completed in New York. The reorganisation of the Enel companies that previously belonged to the Gruppo Enersis into Enel Chile and Enel Generación Chile meant we could separate our businesses in Chile from those in Brazil, Peru, Colombia and Argentina.
Almost two years of very intense work, thanks to which the various members of our Group operating in Latin America gradually took on the Enel name. To celebrate the moment, on 2 December 2016, Francesco Starace rang the bell that traditionally opens the New York Stock Exchange, a symbolic gesture that marked the Group’s new, more solid direction with its companies united under the same name and brand.
The closing of the Enel Chile tender offer further simplifies the organisation and is another step in a direction embarked upon in 2015 to streamline our organisation: the simpler the company structure, the more it enhances the quality of the work of our staff. This is turn makes the company more efficient, creating value for shareholders and our customers alike.