• Following settlement of the offer, which took place on 11 November, Gas Natural Fenosa Chile will pay 4,700 Chilean Pesos per share in the country's largest ever takeover bid.
  • By concluding this acquisition, the Spanish group will enter the energy market in Chile and strengthen its presence in Latin America. The transaction forms part of the internationalisation and growth targets set by GAS NATURAL FENOSA, in line with its 2013-2015 Strategic Plan.


The takeover bid formulated by Gas Natural Fenosa Chile for the Chilean company Compañía General de Electricidad, S.A. (CGE) was concluded successfully today after 402,122,728 shares, representing 96.5% of the share capital of the company, accepted the offer.

Hence, Gas Natural Fenosa Chile (an affiliate of GAS NATURAL FENOSA) will be the new majority shareholder of the largest electricity and gas distributor in Chile, and one of the largest companies in its sector in Latin America. After closing the deal, the deadline for acceptance of which closed on 11 November, the power company run by Salvador Gabarró will hold 96.5% of the share capital.

Following the result from the bid was announced and according to the current legislation on takeover bids in Chile, the company will pay 4,700 Chilean Pesos per share. This will mean a disbursement for the transaction of approximately 2.55 billion euros. The total size of the operation, including the consolidated debt of CGE and the minority stakes in its affiliates, amounts to approximately 6 billion euros.

The operation will not affect the sound financial position of GAS NATURAL FENOSA and will accelerate compliance with the targets set in the 2013-2015 Strategic Plan by providing assets and business of a high quality, explained the managing director of the company, Rafael Villaseca, after the transaction was announced.

Agreement with the majority shareholders

GAS NATURAL FENOSA signed a Purchase Commitment Contract in October with the main shareholders of the Chilean company, representing 54.19% of the share capital, under which they irrevocably committed to sell their shares within the framework of the takeover bid that would be launched.

The acquisition by GAS NATURAL FENOSA is the largest international purchase operation undertaken by the multinational Spanish power company in its history and also the largest purchase of a utility company in Latin America.

Entering a key energy market

The purchase of CGE represents a milestone for GAS NATURAL FENOSA that will allow the company to enter the Chilean energy market in a leading position by taking over the top electricity and gas distribution company in the country, which has over 2.5 million customers and distributes electricity to 40% of the Chilean market, including part of the capital - Santiago.

By acquiring CGE, the multinational Spanish power company is now active in the energy sector of seven of the nine largest urban areas in Latin America and five of the main capitals on the continent (Bogota, Buenos Aires, Mexico City, Rio de Janeiro and Santiago).

About Grupo CGE

Compañía General de Electricidad, S.A. (CGE) is the lead company of one of the most important integrated energy groups in the country. Almost all its activity is concentrated in the electricity and gas sector in Chile (from Arica to Puerto Williams), Argentina (in four provinces) and Colombia (26 of the 32 districts in the liquefied gas distribution sector).

In the electricity market, the company is responsible for the distribution of 40% of all electricity and meets the demands of 43% of all consumers in Chile with over 2.5 million customers. It is also the leading high-voltage network operator with a market share of 35% and over 3,400 kilometres of power lines.

Furthermore, it holds a direct stake in GASCO - one of the three main LPG distributors with a market share of 27% - and METROGAS - the main gas distributor in the country with over 580,000 customers. It also ensures a sound position in the liquefied natural gas (LNG) market through its stake in the Quintero terminal.

About GAS NATURAL FENOSA

GAS NATURAL FENOSA is one of the leading multinational companies in the gas and electricity sector. The company operates in more than 25 countries, has more than 20 million customers and has 15.4 GW of installed power. It is the largest integrated gas and electricity company in Spain and Latin America, leading the natural gas sales market on the Iberian Peninsula, and is the biggest distributor of natural gas in Latin America. With a fleet of 9 LNG tankers, it is a key company for LNG/NG in the Atlantic and Mediterranean basins, where it operates 30 bcm.

Barcelona, 14 November 2014.

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