Enel Chile S.A (SNSE:ENELCHILE) signed a non-binding proposal to acquire remaining 40.02% stake in Enel Generación Chile S.A. (SNSE:ENELGXCH) for CLP 1.9 trillion on August 25, 2017. The offer price is CLP 590 per ordinary share and CLP 17,700 for each American depositary share. Under the terms of the transaction, the consideration is payable in cash with the condition that any eligible holder of Enel Generación shares tendering in the offer shall have agreed to apply CLP 236 of the consideration payable for each Enel Generación share tendered to subscribe for Enel Chile shares at a subscription price of CLP 82 per Enel Chile share. As a result, following completion of the offer, for each Enel Generación share validly tendered, an Enel Generación shareholder will receive CLP 354 in cash and 2.87805 Enel Chile shares as a result of its satisfaction of Enel Chile share subscription condition. The net cash consideration will be financed by cash on hand and borrowings under a bridge loan facility to be entered prior to the expiration date.

The launch of the offer will be subject to approval by shareholders of Enel Chile and Enel Generación and registration of the new Enel Chile shares to be issued in connection with the capital increase in the Securities Registry of the Chilean Superintendence of Securities and Insurance and the offers with Superintendency of Securities and Insurance of Chile (SVS) and the Santiago Stock Exchange, the Valparaíso Stock Exchange and the Chilean Electronic Stock Exchange. The offer is subject to condition precedent that after the tender offer, Enel Chile must own at least 75% of Enel Generación Chile's issued capital and subject to the execution of an amendment to Enel Generación Chile's by-laws. On October 13, 2017, the SVS confirmed that the SVS would not object if the offer is conducted as a cash tender offer subject to the Enel Chile share subscription condition. In addition, on October 24, 2017, the Chilean Superintendence of Pension Funds Administrators (Superintendencia de Pensiones) confirmed that Administradora de Fondos de Pensiones Capital S.A. (SNSE:AFPCAPITAL), as shareholders of Enel Generación, may agree to apply part of the consideration payable for each Enel Generación share tendered to subscribe for Enel Chile shares. As of November 14, 2017, the Boards of Enel Chile and Enel Generación unanimously approved the transaction. As of December 20, 2017, the transaction was approved by the shareholders of Enel Chile.

The tender offer is expected to be completed by mid/ late March 2018. As on February 8, 2018, it was announced that Enel Chile intends to commence the tender offer on February 16, 2018 and the tender offer period is expected to terminate on March 22, 2018. As of February 16, 2018, Enel Chile announced the notice of offer commencement. Alfonso Yañez of Banchile Asesoría Financiera S.A. acted as the financial advisor to Enel Chile S.A. Felipe Porzio and Martin Engel of LarrainVial Servicios Profesionales Limitada and Gonzalo Sanhueza of Econsult RS Capital S.p.A acted as financial advisors for Enel Chile. Gonzalo Fanjul of ASSET Chile S.A. acted as financial advisor for Enel Generación. Computershare Trust Company, N.A. and Citibank, N.A. acted as tender agents for Enel Chile while BTG Pactual US Capital, LLC, as dealer manager for the U.S. offer and Georgeson Inc., as information agent for the U.S. offer. Oscar Molina acted as independent appraiser for Enel Chile in the transaction.

Enel Chile S.A. (SNSE:ENELCHILE) completed the acquisition of an additional 33.6% stake in Enel Generación Chile S.A. (SNSE:ENELGXCH) for CLP 1.6 trillion on March 22, 2018. All tendered common shares and American Depositary Share have been accepted for payment and payment is expected to be made on April 2, 2018. All precedent conditions related to the transaction are now fulfilled.