Enron Global Power & Pipelines L.L.C. and Perez Companc Subsidiary Agree to Acquire 25 Percent Interest in Compania de Inversiones de Energia S.A. (CIESA)
FOR IMMEDIATE RELEASE: Friday, July 12, 1996
HOUSTON -- Enron Global Power & Pipelines L.L.C. (EPP) and Perez Companc today announced that they have agreed to acquire a 25 percent interest in Compania de Inversiones de Energia S.A. (CIESA) from the Argentina Private Development Trust Company Limited (APDT) for a total of $225 million. Perez Companc, through its wholly owned subsidiary, Maipu Inversora, S.A. will acquire 12-1/2 percent of CIESA and EPP will acquire between 8-1/3 and 12-1/2 percent, the final amounts to be determined prior to closing, which is expected to occur in late July. Enron Corp. will hold the balance, if any.
EPP and Perez Companc each currently own a 25 percent interest in CIESA. As a result of this transaction, which is subject to the approval of ENARGAS, the Argentine regulatory authority, and the fulfillment of certain requirements, Perez Companc will hold 37-1/2 percent of CIESA, EPP will own between 33-1/3 percent and 37-1/2 percent, Compania de Inversiones de Transporte en Gas S.A. will own 25 percent and Enron Corp. will hold the balance, if any.
CIESA owns 70 percent of the common stock of Transportadora de Gas del Sur S.A. (TGS), a 4,104 mile natural gas pipeline system in Argentina. The pipeline is the largest in South America, with a capacity of 1.9 billion cubic feet of gas per day. The remainder of TGS's stock is publicly traded.
"EPP's increased investment in CIESA reflects our continued confidence in Argentina and the TGS system," said Rodney L. Gray, chairman, president and chief executive officer of EPP.
The interest in CIESA, which will be initially financed with debt, will be EPP's third acquisition since May 1996 and its first third-party acquisition since its inception in November 1994. Through a purchase right agreement with Enron that provides EPP preferential access to Enron's significant backlog of energy development projects, EPP acquired an approximate 50 percent interest in both a 357-mile natural gas pipeline system in Colombia in May and a 185-megawatt power project in the Dominican Republic in June. EPP continues to evaluate third-party projects which could contribute to earnings and cash flow growth.
Enron Global Power & Pipelines L.L.C., which is owned approximately 59 percent by Enron Corp., owns interests in natural gas pipelines in Argentina and Colombia, two power plants in the Philippines and one power plant in both Guatemala and the Dominican Republic. The company is traded on the New York Stock Exchange under the ticker symbol "EPP."
For additional information please contact:
Kelly Kimberly
(713) 853-5377
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