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Enel SpA to increase its stake in Chilean subsidiary

Enel SpA has entered into two share swap transactions to acquire an equity stake of up to 5% in Chilean subsidiary Enel Américas SA's entire stock capital, as part of its plan to buy out minorities in South America.

Under the swap transactions, Enel will acquire up to 1,895,936,970 shares of Enel Américas' common stock and up to 19,533,894 of Enel Américas' American depositary shares, with each representing 50 shares of Enel Américas' common stock, according to an Oct. 16 release. Enel SpA did not disclose the financial institution involved in the deal.

The total number of shares bought by Enel will be contingent upon the financial institution establishing its hedge positions with respect to the swap transactions.

The amount payable for Enel Américas' common stock will be based on the prices at which the financial institution forms its hedge. The amount payable for any of the Enel Americas' ADSs will be based on the observable volume-weighted average prices of the company's ADSs when the financial institution establishes its hedge with respect to the swap transaction.

Enel currently owns 51.8% of shares in Enel Americas. The deal is expected to be completed no later than the fourth quarter of 2019.