Gas Natural Fenosa has closed the takeover bid on the Compañía General de Electricidad (CGE), one of the largest electricity and gas distribution companies in Chile, reaching 96.5% of the share capital of the company. In October 2014, the Spanish utility had reached an agreement to acquire a 54.19% stake in the group and had to launch a takeover bid for the remaining stakes in the company. Gas Natural Fenosa will pay ChPE 4,700 per share (US$7.95/share), representing a total acquisition of €2.55bn.
This acquisition is part of Gas Natural Fenosa's expansion plans in Latin America, with a special focus on Chile, a leading economy in the region. It will strengthen the group's leadership in gas distribution in major Latin America cities and boost its electricity distribution activities. It will increase the share of Latin America in the group's EBITDA from 26% to 35% and improve the group's risk profile.