Codelco says not yet decided on energy unit sale

SANTIAGO, Aug 19 (BestGrowthStock) – Chile state copper giant
Codelco [CODEL.UL] said on Thursday it had not decided whether
to sell a 40 percent stake in a local energy company that could
be worth around $1 billion.

Daily El Mercurio reported Codelco had opted to sell the
stake in E-CL, the country’s fourth largest power generation
firm, which is majority owned by GDF Suez (GSZ.PA: ), via a
public auction in the local bourse.

The leading newspaper did not source its report, published
on Thursday. Shares in E-CL (EDN.SN: ) were 1.73 percent higher
at 1,230 pesos in early trade after the newspaper report.

A Codelco spokesman said the company had not decided on any
sale. A Codelco board member told Reuters the nine-member board
didn’t expect to decide on the stake sale this year as it has
enough financing for its expenses this year.

The board member asked not to be named because he was not
allowed to speak publicly.

President Sebastian Pinera said this year Codelco could
sell some assets to help finance the reconstruction of cities
and industries ravaged by a massive February quake. His
government is evaluating the sale of other state assets.

El Mercurio said Codelco already had a short list of banks
to arrange the sale, which included Citigroup (C.N: ), JP Morgan
(JPM.N: ), Celfin and LarrainVial.

E-CL (EDN.SN: ) has a market value of $2.56 billion and its
shares have climbed 34 percent this year, according to Reuters
data.
($1= 501.60 Chilean pesos)
(Reporting by Alonso Soto; Editing by Walter Bagley)

Codelco says not yet decided on energy unit sale