Endesa Chile approves creation of local holding company

The board of Chilean generator Endesa (NYSE: EOC) has unanimously approved the creation of a new holding company based in Brazil called Endesa Brasil, Endesa said in a statement. Endesa Brasil will group all of the Brazilian assets of Endesa and parent company Enersis. Enersis' board and the board of Enersis' parent Endesa Internacional approved the creation of Endesa Brasil last week. The aim is to simplify the ownership structure of Endesa and Enersis' assets in Brazil, improve cash flow stability, better access third-party financing and create new investment opportunities and operating synergies, the statement said. The ownership of Endesa Brasil will be as follows: Endesa Internacional 23.7%, Enersis 23.5%, Endesa Chile 33.6%, Chilectra 19.2%. The new company will receive US$1.35bn of capital corresponding to the equity of its subsidiaries as of December 31, 2004. Endesa Brasil will assume ownership of distributors Ampla and Coelce, generators Fortaleza and CDSA and Brazil-Argentina interconnection company Cien.