Niagara Energy launches takeover bid to buy Enel power generation firm in Peru

Niagara Energy launches takeover bid to buy Enel power generation firm in Peru

The Niagara Energy company launched a public acquisition offer (OPA) on Thursday) to acquire up to all of the shares of the company Enel Generación Perú, a subsidiary of the Italian company Enel, reported the Lima Stock Exchange.

The offer will be valid for 20 days and contemplates the purchase of up to 3,134,886,677 shares of Enel Generación Perú ENGEPEC1.LM, according to the operation prospectus. Enel ENEI.MI had already announced in November an agreement to sell this firm in Peru for about 1.4 billion dollars.

Niagara Energy offers to pay $0.4689 for each share in the takeover bid, which is a condition for the offer to become effective a minimum purchase of 2,725,876,861 shares, or 86.96% of the share capital of Enel Generación Perú, according to the share acquisition notice published by the Lima stock exchange.

The offer would mean a discount on the energy generator's securities, whose shares were trading at 2.11 soles (about US$0.53) at the close of Wednesday.

At 11:00 local time (1600 GMT) Enel Generación Perú shares fell 6.2% on the Lima stock market, to 1.98 soles per share, according to stock market data.

The energy generation company has a market capitalization of 6.2 billion soles, and its securities, although without a large traded volume, They were on track to record their worst day since November 2023.

Enel reported in April 2023 that it agreed to sell its other units Enel Distribución Perú and Enel X Perú to the Chinese company Southern Power Grid International, for approximately US$2.9 billion, a transaction that was authorized in February of this year by the local antitrust body.