===============================================================================
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. 21
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 29)
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<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: Duke Energy International, L.L.C.
- --------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-2051206
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON OO
- --------------------------------------------------------------------------------
Page 2 of 29
<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: Duke Energy Global Asset Development, Inc.
- --------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 88-0366429
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Navada
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
Page 3 of 29
<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: Duke Energy Services, Inc.
- -------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 48-0650320
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
Page 4 of 29
<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: PanEnergy Corp.
- -------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 74-2150460
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
Page 5 of 29
<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: Duke Capital Corporation
- -------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 51-0282142
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: BK, WC,OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
Page 6 of 29
<PAGE>
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS: Duke Energy Corporation
- -------------------------------------------------------------------------------
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-0205520
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of North Carolina
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
Page 7 of 29
<PAGE>
This Amendment No. 21 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 1. SECURITY AND SUBJECT COMPANY.
(b) The information contained in the press release issued by Duke on
April 16, 1999, a copy of which is filed as Exhibit (a)(56) to this Schedule
14D-1 and is incorporated herein by reference.
ITEM 10. ADDITIONAL INFORMATION.
(f) As noted in the press release referred to in Item 1 above, the
Expiration Date of the U.S. Offer, which was scheduled for 12:00 midnight, New
York City time, on Friday, April 23, 1999, is hereby extended to 12:00 midnight,
New York City time, on Thursday, April 29, 1999, unless the U.S. Offer is
further extended.
Based on information provided by the receiving agents for the Offers,
as of midnight on April 15, 1999, approximately 28.4 million Shares, including
those represented by ADSs, had been tendered pursuant to the U.S. Offer. An
additional 356 million Shares had been tendered pursuant to the Chilean Offer.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
EXHIBIT NUMBER DESCRIPTION
- -------------- -----------
Exhibit (a)(55) English translation of a notice published by Duke in El
Segundo on April 15, 1999.
Exhibit (a)(56) Press release issued by Duke, dated April 16, 1999,
announcing the increase in the price per Share and
percentage of Shares to be purchased by Duke in its tender
offers and announcing the extension of the Expiration Date
of the U.S. Offer.
Exhibit (a)(57) Script to be used by Credit Suisse First Boston Corporation
in communications with the holders of Shares and ADSs.
Page 8 of 29
<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 16, 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 9 of 29
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
- -------------- -----------
Exhibit (a)(55) English translation of a notice published by Duke in El
Segundo on April 15, 1999.
Exhibit (a)(56) Press release issued by Duke, dated April 16, 1999,
announcing the increase in the price per Share and
percentage of Shares to be purchased by Duke in its tender
offers and announcing the extension of the Expiration Date
of the U.S. Offer.
Exhibit (a)(57) Script to be used by Credit Suisse First Boston Corporation
in communications with the holders of Shares and ADSs.
Page 10 of 29
EXHIBIT (A)(55)
Page 11 of 29
<PAGE>
AMENDMENT TO NOTICE OF TAKE OF CONTROL AND NOTICE OF OFFER TO ACQUIRE IN AUCTION
SHARES OF EMPRESA NACIONAL DE ELECTRICIDAD S.A.
DUKE ENERGY INTERNATIONAL, L.L.C., ("DUKE INTERNATIONAL") a company organized
pursuant to the laws of the state of Delaware, United States, engaged in the
business of being a holding company, headquartered at 5400 Westheimer Court,
Houston Texas, United States and for these purposes Moneda 970, 12th floor,
Santiago, Chile, and a wholly-owned subsidiary of DUKE ENERGY CORPORATION
("DUKE"), a company organized pursuant to the laws of the state of North
Carolina, United States; and DUKE ENERGY INVERSIONES UNO LIMITADA ("DUKE
CHILE"), RUT 77.261.260-5, a Chilean investment company headquartered at Moneda
970, 12th Floor, Santiago de Chile, wholly and indirectly controlled by Duke, in
respect to (i) the notice published on February 18, 1999, in the newspaper La
Segunda, ("NOTICE OF TAKE OF CONTROL") and reprinted in the newspaper El
Mercurio on February 19, 1999, in which it announces its intent of taking
control of "EMPRESA NACIONAL DE ELECTRICIDAD S.A." ("ENDESA"), its affiliates
and other companies controlled by it, as clarified and amended by the notice
published on the newspaper La Segunda on February 25, 1999; and (ii) the notice
of offer of acquisition in Auction of shares of Empresa Nacional de Electricidad
S.A. ("NOTICE OF OFFER"), published on February 25, 1999, in the newspaper El
Mercurio, as modified and complemented by the notice published in El Mercurio on
April 13, 1999, hereby amend and complement the Notice of Take of Control and
Notice of Offer as follows:
1. In the Notice of Take of Control Duke International stated its interest of
acquiring up to 51% of the outstanding capital stock of Endesa. By means of this
notice, Duke Chile and Duke International give notice that they may increase
such percentage in their sole discretion to acquire jointly, in the aggregate,
up to 65% of the issued and paid capital stock of Endesa, which is the maximum
shareholding concentration limit permitted by its bylaws.
2. Duke International and Duke Chile in the event that they shall increase the
price or increase the number of shares to be acquired, will publish, before the
Remate, a noticeable ad in the newspaper El Mercurio of Santiago or the
newspaper La Segunda.
3. The terms of this notice prevail in the event of conflict with those
contained in the Notice of Take of Control and in the Notice of Offer and their
amendments, clarifications and complementations to date.
DUKE ENERGY INTERNATIONAL, L.L.C.
DUKE ENERGY INVERSIONES UNO LIMITADA
Page 12 of 29
EXHIBIT (A)(56)
Page 13 of 29
<PAGE>
April 16, 1999 CONTACT: Danny Gibbs
Office: 704/373-6680
24-hour: 704/382-8333
DUKE ENERGY ANNOUNCES INCREASE IN TENDER OFFERS
FOR EMPRESA NACIONAL DE ELECTRICIDAD S.A. (ENDESA)
CHARLOTTE - Duke Energy (NYSE: DUK) today announced it would increase its tender
offers for Empresa Nacional de Electricidad S.A. (Endesa) to 275 Chilean pesos
per share and also increase the percentage of the outstanding shares of Endesa
it is offering to purchase from 51 percent to 60 percent. The company is making
the offers through its wholly owned subsidiary, Duke Energy International (DEI).
"This increase in our offers demonstrates our commitment to making Endesa a
strong, independent energy company," said Bruce Williamson, president and chief
executive officer of Duke Energy International. "Because of the higher
percentage of shares Duke Energy is offering to purchase, if shareholders tender
their shares to Duke Energy, they will collect nearly twice the amount compared
to the recently announced Enersis offer. Furthermore, we are confident the
remaining shares that will continue to be held by Endesa shareholders after Duke
Energy successfully completes its offers will be of higher value as the company
moves forward to invest in and grow Endesa."
In making the offers to acquire up to 60 percent of the shares of Endesa, Duke
Energy is now offering to purchase up to 4,318,223,778 Endesa shares for 275
Chilean pesos per share in cash in an offer open to Chilean persons (the
"Chilean Offer"). Concurrently, Duke Energy is offering to purchase up to
602,828,970 Endesa shares, including shares represented by Endesa's American
Page 14 of 29
<PAGE>
Depositary Shares (ADS) for 275 Chilean pesos per share (equivalent to 8,250
Chilean pesos per ADS) in cash. This latter offer is open to U.S. persons and
other non-Chileans (the "U.S. Offer").
Duke Energy International will conduct the Chilean Offer through an auction (or
"remate") to be held on the Bolsa Electronica de Chile. The remate will be held
on Thursday, April 22, 1999.
"Chilean shareholders may tender their shares at any Banchile office this
weekend to take advantage of the tremendous value this offer represents," said
Williamson. "We have structured our tender offers to ensure that every Endesa
owner can participate equally. Duke Energy International's offers are open to
every shareholder at the same price and on the same terms."
Duke Energy will amend its U.S. Offer (including withdrawal rights) to reflect
the modifications above and so that the offer will expire at midnight New York
City time on April 29, 1999. As of midnight, April 15, 1999, approximately 28.4
million shares including those represented by the ADS, had been tendered in the
U.S. Offer. An additional 356 million shares had been tendered in the Chilean
Offer.
Duke Energy also reminds shareholders that it is a condition of Duke Energy's
tender offers that at least 3,680,947,436 shares (representing 44.88 percent of
Page 15 of 29
<PAGE>
Endesa's outstanding shares) be tendered in the Chilean Offer and that this
condition may not be met if shareholders tender their shares in the Enersis
remate.
Duke Energy (NYSE:DUK) is a global energy company with more than $26 billion in
assets. Headquartered in Charlotte, N.C., the company reaches into more than 50
countries, producing energy, transporting energy, marketing energy and providing
energy services. In the United States, Duke Energy companies provide electric
service to approximately two million customers in North Carolina and South
Carolina; operate interstate pipelines that deliver natural gas to various
regions of the country; and are leading marketers of electricity, natural gas
and natural gas liquids. Additional information about the company is available
on the Internet at: www.duke-energy.com.
Page 16 of 29
EXHIBIT (A)(57)
Page 17 of 29
<PAGE>
DUKE ENERGY INTERNATIONAL TENDER OFFER FOR ENDESA CHILE (EOC)
TENDER PRICE: 275 CHP PER LOCAL SHARE, 8,250 CHP PER ADR
TENDER CLOSING: APRIL 29, 1999 12:00 MIDNIGHT NEW YORK TIME
SUMMARY TENDER SOLICITATION POINTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dealer Managers: United States Chile
- ---------------- ------------- -----
<S> <C>
Credit Suisse First Boston Banchile
Size of Purchase: 4,921,052,748 shares =
4,318,223,778 shares in the Chilean offer (52.65% of outstanding
capital)
602,828,970 shares in the U.S. offer (7.35% of outstanding capital)
Purchase Price: ChP 275 per ordinary share
ChP 8,250 per ADR (US$17.33 at an exchange rate of 475.95 ChP/US$ on April
15, 1999)
US Offer Expiration Date: 12:00 midnight New York time, April 29, 1999
Market Information: Ticker: EOC
Exchange: NYSE/Santiago
Closing Price (04/15/99): US$15.25 (per ADR)
ChP 248 (per share)
52 week High/Low
ADR: US$19.25/US$7.88
Chile: ChP 281/ChP 122
Current Equity Market Value (4/15/99): US$ 4,169 million
ChP 2,034 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 May 3, 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 29
<PAGE>
- --------------------------------------------------------------------------------
KEY HIGHLIGHTS OF DUKE'S OFFER
- --------------------------------------------------------------------------------
>> 200% of the volume of Enersis' offer
>> 90% of Enersis' offer price
>> 82% more cash today to shareholders
>> Endesa Chile will be Duke Energy's committed growth vehicle in Latin America
DUKE'S OFFER REPRESENTS GREATER VALUE FOR ALL SHAREHOLDERS
- --------------------------------------------------------------------------------
COMPELLING ECONOMICS OF DUKE'S OFFER
------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DUKE OFFER ENERSIS OFFER
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Step 1: Shares Tendered 100 100
Tender Price ChP 275 ChP 305
Shares Purchased @ Offer Price 89(1) 44(1)
------- -------
-------------------------------------------------------------------------------------------------
CASH RECEIVED (CHP) 24,475 13,420
-------------------------------------------------------------------------------------------------
Step 2: Shares Retained 11 56
Assumed Post Tender Trading Price (2) ChP 190 ChP 190
------- -------
Residual Value (ChP) 2,090 10,640
------- -------
-------------------------------------------------------------------------------------------------
TOTAL VALUE (CHP) 26,565 24,060
-------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Assumes 90% of non-Enersis shareholders tender.
(2) 30-day average price prior to announcement of Duke tender offer on February
18, 1999. No assurance can be given as to the prices at which Endesa
Chile's shares or ADS' will trade after the tender offer.
Page 19 of 29
<PAGE>
COMPARISON OF OFFERS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Price %
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DUKE OFFER ChP 275 / US$17.33(1) 60.0%
Enersis Offer ChP 305 / US$19.22(1) 29.7%
SHAREHOLDERS: NUMBER OF
COMMON SHARES
----------------------------------
Enersis 25.30% 2,075.04
Remaining to be potentially tendered 74.70% 6,126.71
ASSUMPTIONS:
90% of non-Enersis shares tendered (5,514.0 MM shares or 67.2% of total
outstanding shares) Post tender share price of ChP 190
------------------------------------------------------------------
DUKE OFFER Enersis Offer
------------------------------------------------------------------
Shares Accepted in Tender (MM) 4,921 2,436
Purchase Price ChP 275 ChP 305
TOTAL (CHP MM) 1,353,290 742,956
(US$ MM) 2,843 1,561
593 3,078
SHARES RETAINED (MM)
Assumed Post Tender Trading Price (2) ChP 190 ChP 190
TOTAL (CHP MM) 112,668 584,843
(US$ MM) 237 1,229
- --------------------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF TENDER (CHP MM) 1,465,957 1,327,798
(US$ MM) 3,080 2,790
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
CHP 266 CHP 241
TOTAL VALUE PER ORDINARY SHARE
$16.76 $15.18
TOTAL VALUE PER ADR
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
OFFER PRICE NEEDED TO MATCH DUKE OFFER CHP 362
$ 22.82
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Exchange rate of 475.95 Chilean pesos per US $1 as of 04/15/99.
(2) 30-day average price prior to announcement of Duke tender offer on February
18, 1999. No assurance can be given as to the prices at which Endesa
Chile's shares or ADS' will trade after the tender offer.
Page 20 of 29
<PAGE>
TENDER OFFER MECHANICS
- ----------------------
1. Duke Energy's objective is to obtain 60% of the outstanding shares of
Endesa Chile: 52.65% through the Chilean offer and 7.35% 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 non Chilean holders of 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 29, 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 29, 1999.
<TABLE>
<S> <C> <C>
By Mail: Facsimile Transmission: By Hand or Overnight Courier:
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>
Contact Innisfree M&A Incorporated for further procedural questions:
o Institutions should call Lloyd Lefcourt at (212) 750-7419
o Customers of brokerage firms should call Frank Lentini at (212)
750-7946
o Or you may call toll free at (888) 750-5834
FLEXIBILITY TO WITHDRAW TENDERED SHARES PRIOR TO CLOSING
- --------------------------------------------------------
3. Any tendered shares can be withdrawn for any reason from the tender offer
until 12:00 midnight New York time on April 29, 1999, unless the offer is
extended.
THE DUKE OFFER IS A SIGNIFICANT PREMIUM TO RECENT ENDESA CHILE ADR PRICES
- -------------------------------------------------------------------------
4. The improved Duke bid represents a 35% premium to the pre-announcement ADR
price of February 17, 1999 and a 71% premium to the average price over the
six month period prior to the announcement.
Page 21 of 29
<PAGE>
5. Average Endesa Chile ADR price over last 9 months is well below current
Duke offer.
THE TABLE BELOW DEPICTS A GRAPH SHOWING ENDESA-CHILE ADS PRICE
FROM 7/9/98 THROUGH 4/15/99
Average Price of $11.37 per ADR
Offer Price of 17.33 per ADR (1)
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
7/9/98 14.69
7/10/98 14.75
7/13/98 14.56
7/14/98 14.69
7/15/98 14.56
7/16/98 14.75
7/17/98 15.38
7/20/98 15.00
7/21/98 14.69
7/22/98 14.44
7/23/98 14.44
7/24/98 14.44
7/27/98 14.38
7/28/98 14.31
7/29/98 14.31
7/30/98 14.13
7/31/98 14.00
8/3/98 14.00
8/4/98 13.94
8/5/98 13.75
8/6/98 13.88
8/7/98 13.50
8/10/98 13.38
8/11/98 13.00
8/12/98 12.69
8/13/98 12.50
8/14/98 12.25
8/17/98 12.00
8/18/98 11.81
8/19/98 11.69
8/20/98 11.00
8/21/98 10.63
8/24/98 10.38
8/25/98 10.38
8/26/98 9.94
8/27/98 9.31
8/28/98 9.50
Page 22 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
8/31/98 9.06
9/1/98 9.50
9/2/98 9.50
9/3/98 8.81
9/4/98 8.69
9/8/98 8.94
9/9/98 8.94
9/10/98 8.25
9/11/98 8.00
9/14/98 8.00
9/15/98 8.75
9/16/98 8.63
9/17/98 8.13
9/18/98 8.06
9/21/98 8.00
9/22/98 8.06
9/23/98 8.63
9/24/98 8.19
9/25/98 8.25
9/28/98 8.69
9/29/98 8.63
9/30/98 8.50
10/1/98 8.06
10/2/98 8.44
10/5/98 8.25
10/6/98 8.13
10/7/98 8.06
10/8/98 8.13
10/9/98 8.25
10/12/98 8.63
10/13/98 8.75
10/14/98 9.38
10/15/98 9.56
10/16/98 9.75
10/19/98 9.75
10/20/98 10.19
10/21/98 9.88
10/22/98 10.19
10/23/98 10.25
10/26/98 10.00
10/27/98 10.13
10/28/98 9.75
10/29/98 9.88
10/30/98 10.06
11/2/98 10.25
11/3/98 10.81
11/4/98 10.75
11/5/98 10.94
Page 23 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
11/6/98 11.19
11/9/98 11.06
11/10/98 11.06
11/11/98 11.13
11/12/98 11.00
11/13/98 10.56
11/16/98 10.56
11/17/98 10.50
11/18/98 10.63
11/19/98 10.69
11/20/98 10.94
11/23/98 10.81
11/24/98 10.75
11/25/98 10.44
11/27/98 10.75
11/30/98 10.75
12/1/98 10.56
12/2/98 10.44
12/3/98 9.75
12/4/98 9.50
12/7/98 9.63
12/8/98 9.50
12/9/98 9.25
12/10/98 9.44
12/11/98 9.38
12/14/98 9.31
12/15/98 10.13
12/16/98 10.63
12/17/98 11.00
12/18/98 10.94
12/21/98 11.31
12/22/98 10.88
12/23/98 11.13
12/24/98 11.06
12/28/98 10.75
12/29/98 10.75
12/30/98 11.00
12/31/98 11.38
1/4/99 11.00
1/5/99 11.00
1/6/99 11.00
1/7/99 10.63
1/8/99 10.50
1/11/99 10.31
1/12/99 10.00
1/13/99 9.38
1/14/99 9.25
1/15/99 9.25
Page 24 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
1/19/99 9.00
1/20/99 9.50
1/21/99 9.75
1/22/99 10.38
1/25/99 12.00
1/26/99 12.06
1/27/99 12.00
1/28/99 11.94
1/29/99 11.63
2/1/99 12.06
2/2/99 12.06
2/3/99 12.50
2/4/99 12.19
2/5/99 12.06
2/8/99 12.25
2/9/99 12.63
2/10/99 13.31
2/11/99 13.06
2/12/99 12.56
2/16/99 12.50
2/17/99 12.81
2/18/99 13.00
2/19/99 13.25 Announcement of Duke's tender offer
(approx. $15.15 per ADR at prevailing
exhange rate on the announcement date)
2/22/99 13.19
2/23/99 12.88
2/24/99 13.13
2/25/99 13.06
2/26/99 12.63
3/1/99 12.63
3/2/99 12.56
3/3/99 12.69
3/4/99 13.25
3/5/99 13.06
3/8/99 13.06
3/9/99 13.38
3/10/99 13.50
3/11/99 13.44
3/12/99 13.50
3/15/99 13.56
3/16/99 13.50
3/17/99 13.56
3/18/99 13.63
3/19/99 13.63
3/22/99 13.63
3/23/99 13.44
3/24/99 13.38
3/25/99 13.69
Page 25 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
3/26/99 13.56
3/29/99 13.69
3/30/99 14.00
3/31/99 14.06
4/1/99 14.56
4/5/99 14.25
4/6/99 14.13
4/7/99 14.00
4/8/99 15.13
4/9/99 14.75
4/12/99 14.38
4/13/99 15.31
4/14/99 15.00
4/15/99 15.25
(1) Based on ChP 275 offer price at an exchange rate of 475.95
Chilean pesos/U.S. dollar as of 4/15/99.
6. 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 $0.35
----------------------------- ---------------------- -------------------
(1) Source: Endesa Chile annual report and press release.
According to I/B/E/S Express, 4 out of 5 research analysts have reduced
their 1999E earnings forecasts for Endesa Chile within the last month.
7. Chilean precedent shows decline in stock price post closing of tender. The
Enersis stock price lost 18.4% in U.S. dollar terms on the day following
the close of Endesa Spain's tender offer.
THE TABLE BELOW DEPICTS A GRAPH SHOWING ENERSIS STOCK PRICE
FROM 10/7/98 THROUGH 4/15/99
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
Date Close
10/7/98 18.75
10/8/98 18.81
10/9/98 19.50
10/12/98 20.31
10/13/98 20.00
10/14/98 20.25
10/15/98 20.19
Page 26 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
10/16/98 19.88
10/19/98 19.88
10/20/98 19.38
10/21/98 18.44
10/22/98 19.38
10/23/98 20.06
10/26/98 20.06
10/27/98 19.81
10/28/98 19.88
10/29/98 19.88
10/30/98 20.88
11/2/98 20.06
11/3/98 20.75
11/4/98 21.00
11/5/98 21.50
11/6/98 21.63
11/9/98 21.63
11/10/98 22.13
11/11/98 22.88
11/12/98 23.31
11/13/98 23.19
11/16/98 22.75
11/17/98 22.50
11/18/98 22.56
11/19/98 22.75
11/20/98 23.19
11/23/98 23.25
11/24/98 23.25
11/25/98 23.44
11/27/98 23.81
11/30/98 23.38
12/1/98 23.56
12/2/98 23.31
12/3/98 23.38
12/4/98 23.25
12/7/98 22.56
12/8/98 22.44
12/9/98 21.63
12/10/98 21.75
12/11/98 21.25
12/14/98 20.75
12/15/98 21.50
12/16/98 22.00
12/17/98 22.94
12/18/98 23.75
12/21/98 25.13
12/22/98 24.69
12/23/98 25.25
Page 27 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
12/24/98 25.00
12/28/98 24.75
12/29/98 25.13
12/30/98 25.63
12/31/98 25.81
1/4/99 25.69
1/5/99 26.25
1/6/99 26.13
1/7/99 26.63
1/8/99 27.00
1/11/99 25.06
1/12/99 24.38
1/13/99 23.13
1/14/99 23.00
1/15/99 22.88
1/19/99 22.94
1/20/99 23.81
1/21/99 24.56
1/22/99 25.75 Announcement of Endesa Spain's tender
offer at ChP 320 per Common Share (approx.
$33.36 per ADR at prevailing exchange
rate on the announcement date)
1/25/99 27.50
1/26/99 27.38
1/27/99 26.63
1/28/99 27.13
1/29/99 27.13
2/1/99 27.81
2/2/99 27.00
2/3/99 26.88
2/4/99 26.75
2/5/99 26.88
2/8/99 26.75
2/9/99 26.69
2/10/99 26.06
2/11/99 26.63
2/12/99 26.44
2/16/99 26.44
2/17/99 26.00
2/18/99 26.13
2/19/99 25.75
2/22/99 25.69
2/23/99 24.50
2/24/99 25.31
2/25/99 25.00
2/26/99 24.19
3/1/99 24.63
3/2/99 24.44
3/3/99 25.00
Page 28 of 29
<PAGE>
- --------------------------------------
Date Share Price in U.S.$
- --------------------------------------
3/4/99 26.25
3/5/99 25.94
3/8/99 26.44
3/9/99 26.50
3/10/99 26.75
3/11/99 26.50
3/12/99 26.13
3/15/99 26.31
3/16/99 26.00
3/17/99 26.31
3/18/99 26.50
3/19/99 26.88
3/22/99 26.63
3/23/99 26.38
3/24/99 26.25
3/25/99 26.13
3/26/99 26.25
3/29/99 26.00
3/30/99 25.81
3/31/99 26.81
4/1/99 27.00
4/5/99 26.50
4/6/99 26.94
4/7/99 28.13 Tender Close
4/8/99 22.94 Day after closing
4/9/99 23.13
4/12/99 24.19
4/13/99 24.19
4/14/99 24.25
4/15/99 24.13
OPPORTUNITY TO SELL A SIGNIFICANT NUMBER OF SHARES AT A FIXED PRICE
- -------------------------------------------------------------------
8. Tender offer is at a fixed price of ChP 275 per ordinary share (ChP 8,250
per ADR, or US$17.33 per ADR at an exchange rate of 475.95 ChP/US$ on April
15, 1999).
9. 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.
10. In aggregate, Duke's tender offer seeks 4,921,052,748 of total Chilean
shares, or 60% of outstanding capital.
o U.S. offer for 602,828,970 shares (or ADR equivalent) (7.35% of
outstanding capital).
o Chilean offer seeks 4,318,223,778 shares (52.65% of outstanding
capital).
Page 29 of 29
