Endesa exercises option to buy Argentina’s 1,320-MW El Chocon

Spanish utility Endesa has exercised its right of first offer to buy a 17.2 percent stake of Argentina’s 1,320-MW Hidroelectrica El Chocon from CMS Energy Corp. of the United States.

The action derailed the purchase of the stake by Sociedad Argentina de Energia S.A. (Sadesa) and U.S. investment partners, announced in February. (HNN 2/5/07)

CMS said March 9 the sale of its stake in Hidroelectrica El Chocon to co-owner Endesa is for US$50 million. Hidroelectrica El Chocon operates the 1,200-MW El Chocon and 120-MW Arroyito hydroelectric projects in Argentina.

CMS said February 1 it signed a binding letter of intent to sell its portfolio of businesses in Argentina, including its 17.23 percent of El Chocon and thermal generators Mendoza and Ensenada for US$180 million. The Michigan-based CMS said the purchaser was Michigan-based Lucid Energy, whose financial partners include Sadesa.

However, CMS said, following that announcement, Endesa decided to exercise its right of first offer to buy the El Chocon stake. CMS said the remainder of the assets would still be sold to Lucid for US$50 million less, a total of $130 million.

At the time the CMS-Lucid-Sadesa deal was announced in February, Argentine media reported that acquisition and others would boost Sadesa, which had no power assets five months earlier, into holding 18,000 MW, 20 percent of the nation’s generating capacity.

Sadesa said March 8 it plans to invest US$650 million over the next five years to increase energy supplies in Argentina. (HNN 3/9/07) Sadesa Managing Director Horacio Turri said that US$500 million would fund a hydroelectric project in the Andes, while US$150 million would be used to increase the generating capacity of the 2,165-MW Central Puerto thermal plant, which Sadesa controls.

Previous articleNHPC again extends dates for 1,000-MW Pakal Dul
Next articleCelesc to transfer stake in 1,140-MW Machadinho to partners

No posts to display