ENRON CORP.AND PEREZ COMPANC AGREE TO PURCHASE
STAKE IN CIESA; ENRON GLOBAL POWER & PIPELINES AND PEREZ COMPANC COMPLETE ACQUISITION OF ADDITIONAL STAKE IN CIESA
FOR IMMEDIATE RELEASE: Thursday, August 1, 1996
HOUSTON -- Enron Corp. (Enron) and Perez Companc today announced that they have agreed to acquire from Citicorp Equity Investments, S.A. (CEI) a 25 percent interest and other rights in Compania de Inversiones de Energia S.A. (CIESA) which interest is owned by CEI through its investment in Compania de Inversiones en Transporte de Gas S.A. (CITGAS) for a total of $249 million. Perez Companc, through its wholly owned subsidiary, Maipu Inversora, S.A. will acquire 12-1/2 percent of CIESA and Enron will acquire 12-1/2 percent. The transaction is expected to close in mid-November.
On July 12, Enron Global Power & Pipelines (EPP) and Perez Companc announced that they had agreed to acquire a 25 percent interest and other rights in CIESA from the Argentina Private Development Trust Company (APDT) for a total of $235 million. This transaction closed on July 31, with EPP and Perez Companc each buying a 12-1/2 percent interest in CIESA.
Enron also announced it has elected to exercise its option to acquire a 4-1/6 percent interest in CIESA from EPP for approximately $39 million. This acquisition is expected to close by August 31, 1996.
EPP and Perez Companc each currently owns a 37-1/2 percent interest in CIESA. As a result of the acquisition of the CEI interest in CIESA and the exercise of the Enron option, which are subject to the approval of ENARGAS, the Argentine regulatory authority, and the fulfillment of certain requirements, Perez Companc will hold 50 percent of CIESA, EPP will own 33-1/3 percent and Enron will own 16-2/3 percent. Perez Companc and EPP will each hold 50 percent of the voting rights in CIESA.
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.
"Enron's increased investment in CIESA reflects our continued confidence in Argentina and TGS," said Kenneth L. Lay, Enron Chairman and Chief Executive Officer.
Enron Corp., one of the world's largest integrated natural gas companies with approximately $13 billion in assets, operates the largest natural gas transmission system in the Western Hemisphere and the second largest system in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; produces and markets natural gas liquids worldwide; owns 59 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; and is one of the largest independent developers and producers of electricity in the world. Enron Corp. is traded under the ticker symbol, "ENE."
For additional information please contact:
Elaine Thomas
(713) 853-6814
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