PSEG Global to Acquire Chilean Uility

PSEG Global(PEG Quote) said Friday it will acquire roughly 94% of Chilean utility company Sociedad Austral de Electricidad (Saesa) and its subsidiaries from Compania de Petroleos de Chile (COPEC) for $460 million.

Saesa serves the southern Chile through its four distribution companies and one transmission company. Saesa also owns a 50% stake in Empresa Electrica del Rio Negro of Argentina. The companies collectively serve more than 615,000 customers.

PSEG, an public utility holding company based in Newark, N.J., also will purchase the 14% of Empresa Electrica de la Frontera (Frontel) not owned by Saesa directly from COPEC.

PSEG plans to make a tender offer for the remaining 6% of Saesa on the Santiago stock exchange.

The acquisition is subject to Argentine regulatory approval, which is expected to take several months.

Shares of PSEG fell $1.10, or 2.6%, to $41.35 in recent New York Stock Exchange trading.