Endesa (Spain)
Line
- Andrea Brentan, Chief Executive Officer
- Borja Prado Eulate, Chairman of the Board of Directors
ENDESA, S. A. is a power generation and energy supply company based in Madrid, Spain. It is the largest company by market capitalization of its kind in Spain and also the largest private utility in Latin America. The company is majority owned by the Italian energy group Enel.
ENDESA in 1944 as a state enterprise named Empresa Nacional de Electricidad, SA (German National Company for Electricity, corporation) by the Instituto Nacional de Industria ( INI), the Spanish State Industrial Institute, founded and gradually privatized by the end of the Franco regime. ENDESA took over, especially since the 1970s, other public power generation and distribution companies, first in Spain, then in other countries ( especially in Latin America). Today ENDESA makes international annual sales of 18.1 billion euros.
Market presence
In 2005, electricity sales amounted to 203 TWh. In a possible acquisition by E.ON (see below) would ENDESA continued to be responsible for the Iberian Peninsula and the expansion in America. The proportion of these regions is distributed with 63 % in Spain / Portugal, 23 % in Latin America and 14 % in the rest of Europe.
Privatization and acquisitions
As part of the wave of privatization and closure of Franco's industrial policy under Prime Minister Felipe González in 1988 ENDESA also partially privatized through the sale of shares to the value of the equivalent of 651 million U.S. dollars, but the Spanish government retained 75.6 % of the shares.
Beginning of the nineties was ENDESA outside Spain, first in Argentina and Portugal, active by taking over the majority of shares of domestic companies. 1994 reduced the Spanish state its share to 66.9 %. ENDESA expanded its business in the time that followed, also in the water supply and telecommunications. 1996 ENDESA was the resolution of the INI in its successor, the Sociedad Estatal de Participaciones Industriales ( SEPI, German government controlled entity ) incorporated. 1997 and 1998 followed by two more rounds of privatization ( sale of shares of the State) that made ENDESA to a private company. In April 1999, the Chilean utilities Enersis of ENDESA acquired a majority holding 60.62 percent of Enersis.
In July 2005, ENDESA retired from the telecommunications industry. The subsidiary in Chile ( Enersis / ENDESA Chile) sold its mobile subsidiary Smartcom to the Mexican company América Móvil. The parent company sold most of its stake in Auna Group. At the same time the various companies of the group, who offer their services in Spain, have been grouped under a brand name. After the withdrawal from the telecommunications business operations was divided into two areas beyond: energy (including electricity, natural gas, renewable energy, etc. ) and PLC (Power Line Communications, so voice and data transmission via the power grid ).
IPO and acquisition and merger plans 2005/ 06
The trading symbol of ENDESA is ELE. Its shareholders are the largest shares (December 2005 ): 85.0 % Free float ( with the Investment Fund Chase Nominees and State Street Bank and Trust Co., the largest owner with 5.732 % and 5.038 %) and the Spanish banks and savings banks Caja Madrid (9% ), La Caixa (2.03 %) and BBVA (2.3% ) and the State SEPI ( 2.9%). From these institutional investors, the majority of which operates abroad, should any merger agree almost 50%.
ENDESA operates in Spain, Italy, France, Portugal, Morocco, Chile, Argentina, Colombia, Peru, Brazil and the Dominican Republic. In terms of sales ENDESA also has operations in Germany, mainly in the area of power supply to large industrial customers and municipal utilities.
Takeover plan of the Gas Natural
From August 2005 ENDESA was the target of a hostile takeover attempt by the Barcelona-based Gas Natural, which provided political and business world sensation and discussions. In December 2005, ENDESA rejected this assumption from by only half as large competitors because the price was too low and the " industrial logic " of such a takeover were missing. Background of the takeover plan was probably regional political aspects, as each banks in Madrid and Catalonia are major shareholders of both companies.
E.ON 's bid
On 21 February 2006, the German energy producer E.ON announced also to want ( " friendly ") assume ENDESA. ENDESA has the offer but not referred to as friendly. His offer of 29.1 billion euros exceeded the Gas Natural by about 20 %, but can be increased slightly after initial negotiations. Between August 2005 and February 2006 was Endesa's share price about 18 to about 22 euros - before E.ON 's offer - increased. The CEO of E.ON, Wulf Bernotat, estimated that the transaction under consideration of Endesa's net debt 18 billion, 3 billion pension provisions and about 5 billion for minority shareholders a volume of € 55 billion would include, making it the largest German history would be.
On September 26, E.ON increased its cash offer of 25 € 35 per ENDESA share for a total 37 billion euros. With the Spanish construction company Acciona, a potential competitor rose before surprising with ten percent of ENDESA one, but without mentioning his exact intentions. It was built by Acciona reportedly not wanting to take on more than 25 percent of ENDESA in the future.
In the event of a merger, for their financing E.ON would benefit in 2005 was sales of Ruhrgas Industries and Viterra, there would be, according to E.ON, the world's largest power company: 50 million customers, 65 billion euros turnover (47 E.ON, 18 ENDESA ) in about 30 states and a total of 107,000 employees in the electricity and gas market as well as in energy alternatives.
Because the earnings of both companies is favorable ratings in a merger, attracted both stock prices since February 21 markedly.
On February 2, E.ON offered 38.75 euros for each ENDESA shares.
On 2 April 2007, finally decided E.ON to withdraw the bid. In return, people traded with the competitors Acciona and Enel from a portfolio of assets with operations in Spain, Italy and France as well as other activities in Poland and Turkey worth about ten billion euros, should the Spanish and Italian companies succeed their joint takeover. Reason for the sudden withdrawal may be that achieving the 50 percent hurdle seemed unlikely that competitors Acciona and Enel held together but already 46 percent of the shares of ENDESA.
Takeover offer from Acciona and Enel
After withdrawal of the takeover bid by E.ON, the path for the Spanish company Acciona mixing and the Italian energy company Enel was free. Both companies already stuck together 46% of ENDESA, have announced an early possible takeover bid in the amount of € 41 per share.
In October 2007, 92 percent of ENDESA were acquired for 42.5 billion euros. Of Enel held a stake of 67 percent and Acciona a share of 25 percent. This 25 percent share of Enel since acquired and is now 92.063 % majority shareholder of Endesa