13 October 2009

Endesa Chile Rises to Four-Week High on Edegel Stake

By Nathan Gill
Oct. 13 (Bloomberg) -- Empresa Nacional de Electricidad SA, Chile’s biggest power generator, rose the most in almost four weeks after boosting its stake in a Peruvian unit at an “attractive” price.

Endesa, as the company is known, gained 1.3 percent to 868 pesos in Santiago trading, its biggest advance since Sept. 16.

Santiago-based Endesa bought 29.3 percent of Edegel SA, a Lima-based electricity producer, for 1.61 soles per share, or $375 million, the company said in a statement posted on Chile’s securities regulator’s Web site after markets closed on Oct. 9. Santiago trading was closed yesterday for a holiday.

“This should have a positive effect on shares,” Alvaro Pipino, head of research at brokerage IM Trust, said today in a telephone interview from Santiago. “When you look at the numbers of what they are paying for installed megawatts, it’s quite attractive.”

Endesa now owns a 62.4 percent stake in Edegel, the statement said. Edegel was unchanged in Lima trading after gaining 1.2 percent to 1.63 soles yesterday.