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6 years ago
UPDATE 1-Codelco raises $1.04 bln from energy stake sale
January 28, 2011 / 1:50 PM / 6 years ago

UPDATE 1-Codelco raises $1.04 bln from energy stake sale

2 Min Read

* Sale equivalent to a third of miner's 2011 investment

* Codelco to use proceeds for investments (Recast with sale, adds Codelco comments)

SANTIAGO, Jan 28 (Reuters) - Chilean copper miner Codelco [CODEL.UL] raised $1.04 billion or about a third of its planned investment this year from the sale of its 40 percent stake at energy firm E-CL EDN.SN on Friday.

Codelco sold its stake at 1,200 per share, below the 1,320 pesos the market had predicted in a Reuters poll released Tuesday.

World No. 1 copper producer Codelco has said it will use the proceeds to finance its $3.3 billion investment plan aimed at maintaining output at century-old mines.

Codelco's vice president of finances Thomas Keller said the state-run miner had no plans to sell other assets and was still evaluating whether to issue debt this year to fill the investment gap.

The amount of debt issuance could depend on the government freeing some of Codelco's profits to be used in its investment budget, experts said. Codelco's proceeds go directly to the state.

Shares in E-CL, which is majority owned by French giant GDF Suez GSZ.PA, plummeted nearly 5 percent early on Friday to 1,203 pesos.

The energy firm had gained in recent weeks on growing expectations among investors of robust energy demand in the mining industry of the world's top producer of the red metal.

$1 = 485 Chilean pesos Reporting by Antonio de la Jara; Editing by John Picinich

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