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Gas Natural of Spain offers $3.3 billion for Chilean largest utility company

Gas Natural of Spain offers $3.3 billion for Chilean largest utility company

Posted by José Peralta on October 16, 2014

Gas Natural of Spain said on Sunday that it would offer $3.3 billion to acquire Compañía General de Electricidad, Chile’s largest electricity distributor, to expand its position in Latin America.

The company said in a regulatory filing that it was offering $7.93 a share. As part of the offer, it said that shareholders that control 54.19 percent of the company had already agreed to sell their holdings at that price.

Including debt, Gas Natural, which is based in Barcelona, said the value of the deal would be about 6 billion euros, making the transaction its biggest foreign acquisition and the largest purchase of a utility in Latin America.

Compañía General de Electricidad has more than 2.5 million customers and distributes electricity to 40 percent of tChile, Gas Natural said in a statement. With the acquisition, the company said, it would be in the energy business in seven of the nine largest cities in Latin America, including Bogotá, Buenos Aires, Mexico City, Rio de Janeiro and Santiago de Chile.

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