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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14D-1
TENDER U.S. OFFER STATEMENT PURSUANT TO SECTION 14(d)(1) OF
THE SECURITIES EXCHANGE ACT OF 1934
AMENDMENT NO. 19
Empresa Nacional de Electricidad S.A.
(Name of Subject Company)
Duke Energy International, L.L.C.
Duke Energy Corporation
(Bidders)
Common Stock, no par value
(including that represented by
American Depositary Shares) 29244T101
(Title of Class of Securities) (CUSIP Number of Class of Securities)
Carol Graebner, Esq.
General Counsel
Duke Energy International, L.L.C.
5400 Westheimer Court
Houston, Texas 77056-5310
Telephone: (713) 627-6542
Facsimile: (713) 627-5219
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of Bidders)
----------------------------------
Copy to:
Frederick S. Green, Esq.
Ellen J. Odoner, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153-0119
Telephone: (212) 310-8000
Facsimile: (212) 310-8007
(Continued on following pages)
(Page 1 of 20)
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1 NAME OF REPORTING PERSONS: Duke Energy International, L.L.C.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-2051206
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON OO
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Page 2 of 20
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1 NAME OF REPORTING PERSONS: Duke Energy Global Asset Development, Inc.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 88-0366429
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Navada
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 3 of 20
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1 NAME OF REPORTING PERSONS: Duke Energy Services, Inc.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 48-0650320
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 4 of 20
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1 NAME OF REPORTING PERSONS: PanEnergy Corp.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 74-2150460
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 5 of 20
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1 NAME OF REPORTING PERSONS: Duke Capital Corporation
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 51-0282142
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: BK, WC,OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 6 of 20
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1 NAME OF REPORTING PERSONS: Duke Energy Corporation
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-0205520
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of North Carolina
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 7 of 20
<PAGE>
This Amendment No. 19 amends and supplements the Tender Offer Statement
on Schedule 14D-1 filed on February 25, 1999, as amended, by Duke Energy
International, L.L.C., a Delaware limited liability company (the "BIDDER") and a
wholly-owned, indirect subsidiary of Duke Energy Corporation, a North Carolina
corporation ("Duke"), with respect to the offer by Bidder to purchase for cash
up to 501,947,400 shares of Common Stock, no par value (the "SHARES"), of
Empresa Nacional de Electricidad S.A. (the "COMPANY"), a publicly traded stock
corporation (sociedad anonima abierta) incorporated under the laws of the
Republic of Chile, including Shares represented by American Depositary Shares,
each representing 30 Shares and evidenced by American Depositary Receipts.
ITEM 10. ADDITIONAL INFORMATION.
Clause (f) of Item 10 is supplemented as follows:
The Purchaser understands that all steps necessary under applicable Chilean law
for the legalization of the Bylaw Amendments have been taken by Endesa-Chile and
accordingly, that the Bylaw Amendment Condition to the U.S. Offer has been
satisfied.
All purchases of Shares in the Chilean Auction will be made by Duke Energy
Inversiones Uno Limitada (the "CHILEAN PURCHASER"), a limited liability company
organized under the laws of Chile and an indirect wholly-owned subsidiary of
Duke.
In order to facilitate tenders of Shares in the U.S. Offer, the Purchaser and
the Receiving Agent have authorized Banchile Corredores de Bolsa ("BANCHILE") to
accept tenders of Shares (but not of ADSs) in the U.S. Offer on behalf of the
Purchaser and the Receiving Agent at Banchile's offices located at Agustinas
975, 2nd Floor, Santiago, Chile.
Non-Chilean holders of Shares who decide to tender their Shares in the U.S.
Offer will have the option of effecting their tender either through the
Receiving Agent as originally provided in the U.S. Offer to Purchase, or through
Banchile. A holder wishing to tender his/her Shares through Banchile, should
complete and sign the Form of Acceptance (or a copy thereof) in accordance with
the instructions in the Form of Acceptance and hand deliver it together with the
Titulo(s) evidencing the tendered Shares and all other documents required by the
terms of the U.S. Offer to Banchile's offices at Agustinas 975, 2nd Floor,
Santiago, during normal business hours and prior to the Expiration Date. Shares
held in book-entry form may also be tendered through Banchile by submitting by
hand to Banchile at Agustinas 975, 2nd Floor, Santiago, a completed Form of
Acceptance together with (i) a letter to the DCV instructing the DCV to perform
a book-entry transfer in favor of the Purchaser for such number of Shares as may
be specified in the Traspaso that is included in the Form of Acceptance (which
number, as indicated in Section 3 of the U.S. Offer to Purchase, should be left
blank), (ii) the certificate issued by the DCV evidencing the number of Shares
held in deposit with such facility and indicating that such Shares are free and
clear of liens, pledges or encumbrances and (iii) all other documents required
by the terms of the U.S. Offer.
Tendering holders of Shares whose Shares are registered in their own name and
who tender directly to Banchile (like those who tender directly to the Receiving
Page 8 of 20
<PAGE>
Agent) will not be obligated to pay brokerage fees, commissions or stock
transfer taxes on the sale of their Shares pursuant to the U.S. Offer.
The Purchaser will pay all charges and expenses of Banchile incurred in
connection with the U.S. Offer. Banchile is acting also as Dealer Manager in
connection with the Chilean Offer and will act as the Chilean Purchaser's Broker
in the Chilean Auction.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
EXHIBIT NUMBER DESCRIPTION
- -------------- -----------
Exhibit (a)(51) English language translation of the notice setting forth the
date of the Chilean Auction and announcing the change in the
acquiring company in the Chilean Offer published by Duke in
El Mercurio on April 13, 1999.
Exhibit (a)(52) English language translation of advertisement to be
published in Chilean newspapers by Banchile Corredores de
Bolsa during the week of April 12, 1999.
Exhibit (a)(53) Script to be used by Credit Suisse First Boston Corporation
in communications with the holders of Shares and ADSs.
Page 9 of 20
<PAGE>
SIGNATURES
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated: April 13, 1999
DUKE ENERGY INTERNATIONAL, L.L.C.
By: BRUCE A. WILLIAMSON
--------------------------------------------
Name: Bruce A. Williamson
Title: President and Chief Executive Officer
DUKE ENERGY CORPORATION
DUKE ENERGY GLOBAL ASSET DEVELOPMENT, INC.
DUKE ENERGY SERVICES, INC.
PANENERGY CORP.
DUKE CAPITAL CORPORATION
By: BRUCE A. WILLIAMSON
--------------------------------------------
Name: Bruce A. Williamson
Title: Authorized person
Page 10 of 20
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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Exhibit (a)(51) English language translation of the notice setting forth the
date of the Chilean Auction and announcing the change in the
acquiring company in the Chilean Offer published by Duke in
El Mercurio on April 13, 1999.
Exhibit (a)(52) English language translation of advertisement to be
published in Chilean newspapers by Banchile Corredores de
Bolsa during the week of April 12, 1999.
Exhibit (a)(53) Script to be used by Credit Suisse First Boston Corporation
in communications with the holders of Shares and ADSs.
Page 11 of 20
EXHIBIT (A)(51)
Page 12 of 20
<PAGE>
NOTICE
Duke Energy International L.L.C., informs that pursuant to what is
provided in number 4 of the Notice of Offer to Acquire Shares of Empresa
Nacional de Electricidad S.A. in an Auction (the "Notice"), published in the El
Mercurio newspaper of Santiago, on February 25, 1999, the shareholders and the
public at large are hereby informed that on the Extraordinary Shareholders
Meeting of Empresa Nacional de Electricidad S.A. held on April 8, 1999, it was
approved to raise the maximum concentration level of share capital from a 26% to
a 65%, and consequently the essential condition mentioned in number 4 of the
Notice has been fulfilled.
Furthermore, it is informed that, subject to the conditions mentioned in the
Notice, the Auction date for the sale of the shares has been set for April 22,
1999, in the "Bolsa Electronica de Chile, Bolsa de Valores" [Electronic Stock
Exchange]
DUKE ENERGY INTERNATIONAL, L.L.C.
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MODIFICATION AND SUPPLEMENT
OF NOTICE OF OFFER TO ACQUIRE, IN AN AUCTION,
SHARES OF EMPRESA
NACIONAL DE ELECTRICIDAD S.A.
Duke Energy International, L.L.C. ("Duke International") in connection
with the notice (the "Notice") published on February 25, 1999, in the "El
Mercurio" newspaper, communicating the terms of a public offer to acquire shares
of Empresa Nacional de Electricidad S.A. ("Endesa"), its affiliates and other
controlled companies, hereby modifies and supplements the Notice as follows:
1. The acquiring company of the shares offered to be purchased shall be
"Duke Energy Inversiones Uno Limitada", Tax Identification Number:
77,261,260-5 a Chilean company specially formed to this effect,
entirely and indirectly controlled by Duke Energy Corporation,
domiciled at 970 Moneda Street, 12th Floor, Santiago, Chile.
2. The auction (the "Auction") of the shares mentioned in the Notice,
shall take place in the "Bolsa Electronica de Chile, Bolsa de Valores"
[Electronic Stock Exchange], pursuant to the provisions of Title 2,
Section II of the Stock Exchange Transactions Manual of the aforesaid
stock exchange, and not in the "Bolsa de Comercio de Santiago, Bolsa de
Page 13 of 20
<PAGE>
Valores". Therefore, whenever the word "Stock Exchange" is mentioned in
the Notice, it shall be understood as referring to the "Bolsa
Electronica de Chile, Bolsa de Valores".
3. The term for the brokers of the Stock Exchange to receive sales orders
is extended up to 12 hours of the second stock exchange business day
prior to the date of the Auction. Similarly, the term for Banchile,
Stock Exchange Brokers to receive sales orders from the brokers, is
extended up to 18 hours of the second stock exchange business day prior
to the date of the Auction.
DUKE ENERGY INTERNATIONAL, L.L.C.
Page 14 of 20
EXHIBIT (A)(52)
Page 15 of 20
<PAGE>
English Language Translation
ENDESA SHAREHOLDERS
Remember that you have until April 20 at 12:00 [noon] in Santiago and until
April 19 at [2:00 p.m.] in the other Regions to make effective your decision to
sell your shares of Endesa at
[Ch]$250 per Share
Come as soon as possible to give your sale order to Moneda 877 Santiago, or to
the offices of Banchile and Banco de Chile throughout the country or to your
regular broker.
If you would like more information, call Banchile at
800 20 28 20 Save yourself the hassle and loss of time. Stop by now!
[BANCHILE LOGO] [DUKE LOGO]
PRORATION SYSTEM
Duke Energy has offered to purchase in Chile, from Chilean shareholders, a total
of 3,680,947,436 shares. The purchase will take place in an auction in a
national stock exchange. In the event that the total number of shares offered
for sale shall be greater than the number offered to purchase, the acquisition
shall be made prorata. This system guaranties equal conditions for all
shareholders, irrespective of the number of shares they own.
Page 16 of 20
EXHIBIT (A)(53)
Page 17 of 20
<PAGE>
DUKE ENERGY INTERNATIONAL TENDER OFFER FOR ENDESA CHILE (EOC)
TENDER PRICE: 250 CHP PER LOCAL SHARE, 7,500 CHP PER ADR
TENDER CLOSING: APRIL 23, 1999 12:00 MIDNIGHT NEW YORK TIME
SUMMARY TENDER SOLICITATION POINTS
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Dealer Managers: United States Chile
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Credit Suisse First Boston Banchile
<TABLE>
<S> <C>
Size of Purchase: 4,182,894,836 shares =
3,680,947,436 shares in the Chilean offer (45% of outstanding capital)
501,947,400 shares in the U.S. offer (6% of outstanding capital)
Purchase Price: ChP 250 per ordinary share
ChP 7,500 per ADR (US$15.54 at an exchange rate of 482.65 ChP/US$ on April
12, 1999)
Expiration Date: 12:00 midnight New York time, April 23, 1999
Market Information: Ticker: EOC
Exchange: NYSE/Santiago
Closing Price (04/12/99): US$14.38 (per ADR)
ChP 238 (per share)
52 week High/Low
ADR: US$19.38/US$7.87
Chile: ChP 282/ChP 122
Current Equity Market Value (4/12/99): US$ 3,930 million
ChP 1,952 billion
Currency of Payment for ADRs:
The purchase price, denominated in Chilean
pesos, will be paid in U.S. dollars at the
exchange rate prevailing on the day of
payment of the tender offer (approximately
April 26, 1999)
Currency of Payment for ordinary
shares: Chilean pesos
The Company: Empresa Nacional de Electricidad S.A. (Endesa Chile) is the largest
electricity generation company in Latin America. The company generates,
distributes and sells electricity in Chile, Argentina, Colombia, Brazil and
Peru. At December 31, 1998, the Company had consolidated assets of
approximately $11.1 billion and had 1998 consolidated sales of
approximately $1.7 billion
Estimated Shareholding Structure:
Enersis S.A 25.3%
Chilean Pension Funds 26.2%
Other ordinary shareholders (domestic & foreigners) 32.8%
ADRs 15.7%
------
Total 100.0%
</TABLE>
Page 18 of 20
<PAGE>
TENDER OFFER MECHANICS
1. Duke Energy's objective is to obtain 51% of the outstanding shares of
Endesa Chile: 45% through the Chilean offer (a condition of Duke's offer)
and 6% through the U.S. offer (all ADRs and ordinary shares held by U.S.
persons and other non-Chileans).
2. Tender offer procedures for ADRs and ordinary shares:
o If you hold ADRs, to participate in the tender offer, you must
instruct your bank or broker to tender your ADRs prior to 12:00
midnight on April 23, 1999.
o If you hold ordinary shares, to tender your ordinary shares, you must
complete the form of acceptance or have your bank or broker complete
the form of acceptance and forward it to Harris Trust Company of New
York by 12:00 midnight on April 23, 1999.
<TABLE>
<CAPTION>
By Mail: Facsimile Transmission: By Hand or Overnight Courier:
<S> <C> <C>
Wall Street Station (for Eligible Institutions Only) 88 Pine Street 19th Floor
P.O. Box 1023 (212) 701-7636 New York, NY 10005
New York, NY 10268-1023 (212) 701-7637
Confirmation of Fax:
(212) 701-7624
</TABLE>
3. Contact Innisfree M&A Incorporated for further procedural questions:
Institutions should call Lloyd Lefcourt at (212) 750-7419
Customers of brokerage firms should call Frank Lentini at (212) 750-7946
Or you may call toll free at (888) 750-5834
FLEXIBILITY TO WITHDRAW TENDERED SHARES PRIOR TO CLOSING
4. Any tendered shares can be withdrawn for any reason from the tender offer
until 12:00 midnight New York time on April 23, 1999, unless the offer is
extended.
THE DUKE BID REPRESENTS A SIGNIFICANT PREMIUM TO RECENT ENDESA CHILE ADR PRICES
5. The Duke bid represents a 21% premium to the pre-announcement ADR price of
February 17, 1999 and a 53% premium to the average price over the six month
period prior to the announcement.
6. Average Endesa Chile stock price over last 9 months well below current Duke
offer.
[GRAPH SHOWING ENDESA-CHILE ADS PRICE FROM 7/10/98 THROUGH 4/12/99]
Page 19 of 20
<PAGE>
7. Chile is experiencing persisting difficult hydrological conditions and
energy prices keep falling in Latin America.
Endesa Chile 1998 Net Income represents a 64% decline over 1997.
----------------------------- ---------------------- ------------------
1997A 1998A
----------------------------- ---------------------- ------------------
Net Income (1) $267MM $96MM
Net Income per ADR (1) $0.98 $0.35
----------------------------- ---------------------- ------------------
(1) Source: Endesa Chile annual report and press release.
According to I/B/E/S Express, 4 out of 5 research analysts have reduced
their 1999E earnings forecasts for Endesa Chile within the last month.
8. Chilean precedent shows decline in stock price post closing of tender. The
Enersis stock price lost 18.4% in U.S. dollar terms on the day following
the close of Endesa Spain's tender offer.
[GRAPH SHOWING ENERSIS STOCK PRICE FROM 10/7/98 - 4/12/99]
OPPORTUNITY TO SELL A SIGNIFICANT NUMBER OF SHARES AT A FIXED PRICE
9. Tender offer is at a fixed price of ChP 250 per ordinary share (ChP 7,500
per ADR, or US$15.54 per ADR at an exchange rate of 482.65 ChP/US$ on April
12, 1999).
10. Historically, Endesa Chile stock has been somewhat illiquid, with an
average daily trading volume of around 150,000 ADRs and 6.6 MM ordinary
shares over the last 6 months, implying potential market movement from
sales of large blocks.
11. In aggregate, Duke's tender offer seeks 4,182,894,836 of total Chilean
shares, or 51% of outstanding capital.
U.S. offer for 501,947,400 shares (or ADR equivalent) (6% of outstanding
capital).
o Chilean offer seeks 3,680,947,436 shares (45% of outstanding capital).
12. If 45% in Chile is not achieved, this may result in greater acceptance in
the U.S. offer on a percentage basis to achieve Duke ownership objective of
51% (if Duke modifies its U.S. offer to accept more shares).
Page 20 of 20
