Chile pension fund-ordered estimate lowers Endesa Latam asset value

Tue Oct 23, 2012 3:14am BST

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* Assets intended for Endesa's Latam unit's capital hike

* $8.02 bln planned cap hike unpopular with pension funds

* Econsult puts assets' worth at least 30 pct lower

SANTIAGO, Oct 22 (Reuters) - The assets that Spain's Endesa intends to use for its Latin American unit's controversial planned capital increase are worth at least 30 percent less than originally stated, a consulting firm hired by Chile's pension funds said on Monday.

Econsult estimated the assets' value at between $2.859 billion and $3.410 billion, well below the $4.86 billion an independent appraisal commissioned by Endesa originally said they were worth. The assets are destined to fund Chile-based energy group Enersis' $8.02 billion capital increase.

Chilean pension funds, known locally as AFPs, hold minority stakes in Enersis and have strenuously rejected the planned capital increase, citing valuation of the assets in question.

The valuation used methodology that "corresponds to the value a third party would be willing to pay on the market" for the assets, Econsult said in a news release.

Enersis hired local investment bank IM Trust and Claro y Asociados to act as independent appraisers for the assets its parent company intends to put up for the capital increase after the Chilean regulator SVS request a reappraisal. Earlier on Monday, Enersis said the reappraisal would be released on Wednesday.

For a Take A Look on the planned capital increase, click on: (Reporting by Antonio de la Jara and Moises Avila; Writing by Alexandra Ulmer; Editing by Jacqueline Wong)