CGE Gas Natural S.A. and Gas Natural Chile S.A. to Merge

On May 31st, both Chilean energy companies announced that they will merge their corporations. The enterprises are controlled by CGE and this move is part of a plan to restructure their operations, as requested by the main shareholder of the group, Spain’s Gas Natural Fenosa S.A. The deal was first disclosed in late 2016.

The aim is to improve the corporate governance of the group of companies that make up CGE, to seek greater efficiency, optimization of processes and to create an integrated organization.

According to a press release issued on behalf of both companies, the merger occurred “in accordance with the law, this merger gives dissenting shareholders appraisal rights, and require the application of related party transactions rules, including the review of independent evaluators and the opinion of board members.”

The deal moved $760 million dollars and involved the jurisdictions of Chile and Spain. The law firm Guerros Olivos worked as the counsel on the deal.

This is not the only Latin American energy company undergoing times of changes, as Brazil`s Petrobras sold $2 billion dollars in assets to Total. Read more here: http://www.leadersleague.com/en/news/petrobras-sells-assets-to-total-for-2-2-billion

C.S.