Endesa Bids for Brazil's CERJ

Endesa Internacional SA, an affiliate of Spain's Endesa SA, Wednesday launched a tender offer for shares of Brazilian distribution company Companhia de Eletricidade do Rio de Janeiro (CERJ) that it doesn't already own at a price of 0.73 real for every 1,000 shares.


Endesa Internacional SA, an affiliate of Spain's Endesa SA, Wednesday launched a tender offer for shares of Brazilian distribution company Companhia de Eletricidade do Rio de Janeiro (CERJ) that it doesn't already own at a price of 0.73 real for every 1,000 shares. The offering price represents a premium of 23.7% over Tuesday's closing price on the Bolsa de Valores de Sao Paulo (BOVESPA), Endesa said.

Endesa Internacional currently owns 16%, both directly and indirectly, of CERJ's 1,547,807 total outstanding shares. The Enersis Group�64% owned by Endesa�owns 44.3%. The remaining share capital is owned by the Portuguese EDP (23%) and other minority shareholders (17%).

Brazilian and Spanish stock exchange authorities have been notified, Endesa said. The transaction, which Endesa said will have an immediate positive impact on earnings, is also intended to increase and consolidate the current holding of Endesa and its affiliates in CERJ.

CERJ distributes electricity in a large portion of Rio de Janeiro state. At the end of 1999, CERJ's customer base was 1.6 million customers, up 7% from1998. Dresdner Kleinwort Benson (March�is serving as financial advisor for the transaction. Dresdner Bank Brasil-Banco Multiple will coordinate the public offer.

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