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ENRON WINS BID FOR PRIVATIZATION OF SÃO PAULO ELECTRICITY DISTRIBUTION COMPANY ELEKTRO
FOR IMMEDIATE RELEASE: Thursday, July 16, 1998
HOUSTON -Enron International announced today that its wholly-owned subsidiary, Terraco Participacoes S.A., was the successful bidder in the privatization of Elektro Eletricidade e Serviços S.A., Brazil's sixth largest electricity distributor. Enron's winning bid for the controlling interest in Elektro was US$29.04 per thousand shares. The purchase price for total shares offered will be approximately US$1.3 billion.
Elektro is a subsidiary of the Companhia Energética de São Paulo (CESP) and serves approximately 1.5 million customers through approximately 51,000 miles of distribution lines. Elektro serves a high demand growth area in the state of São Paulo. In 1997, CESP's transmission business (now Elektro) had net sales of approximately 10,300 gigawatt hours and US$720 million.
"This is an essential component of Enron's energy strategy for the Southern Cone," said Joseph W. Sutton, president and CEO of Enron International. "In Brazil, Elektro complements our integrated energy business, which currently includes gas transportation and distribution as well as power generation interests."
Enron's other activities in Brazil include the construction and ownership of the 480-megawatt natural gas-fired Cuiabá power plant currently under construction in the state of Mato Grosso; an equity stake in the natural gas distribution systems in eight Brazilian states; and equity participation in the Bolivia-to-Brazil pipeline. In the region, Enron also holds an ownership stake in Bolivia's TRANSREDES S.A. natural gas transportation system and in the Transportadora de Gas del Sur pipeline system in Argentina.
Enron is the world's leading integrated electricity and natural gas company. The company, which owns approximately $24 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
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For additional information please contact:
Kelly Kimberly
(713) 853-5377
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