PGR.L Regulatory News (PGR)

15 Oct 2007 07:01

Andes Energia PLC15 October 2007 Andes Energia plc (AIM;AEN) Acquisition of interest in Hidroelectrica Ameghino S.A. Andes Energia plc ("Andes Energia" or "the Company"), the Latin American energygroup, is pleased to announce that further to the statement on 8 October 2007,and pursuant to an option entered into on 30 April 2007 (the "HASA Option") ithas acquired 80 per cent. of the share capital of Hidroelectrica del Sur S.A.("HDS"). HDS owns 59 per cent. of the share capital of Hidroelectrica Ameghino S.A.("HASA"), which has a 50 year concession to operate the 60 megawatts "Ameghino"hydroelectric power plant located in the Province of Chubut, Argentina. Theplant, which was commissioned in 1968, produced approximately 334 gigawatt hourof electricity in 2006 and currently employs 26 staff. For the year ended 31 December 2006, HASA made an audited profit before tax ofUSD 3.7 million on turnover of USD 6.7 million. As at 31 December 2006, HASA hadnet assets of USD 19.1 million and net current assets of USD 1.6 million. Otherthan its investment in HASA, HDS has negligible assets and liabilities. Consideration for the acquisition of the interest in HDS will be satisfiedthrough the issue of 6,666,667 new ordinary shares of 10 pence each in the sharecapital of Andes Energia and a cash payment of USD6.0 million. The cash elementof the consideration will be financed through Andes Energia existing cashresources. Application has been made for the new Andes Energia shares to be admitted to AIMand it is expected that admission will take place on 18 October 2007. Followingadmission Andes Energia will have 107,570,703 ordinary shares in issue withvoting rights. The Company does not hold any shares in treasury. This figure of107,570,703 ordinary shares may be used by shareholders in the Company as thedenominator for the calculations by which they will determine if they arerequired to notify their interest in, or a change in their interest in, theshare capital of the Company under the FSA's Disclosure and Transparency Rules. As set out in the re-admission document posted to shareholders on 7 September2007, Michael Stevens, the chairman of Andes Energia, holds an indirect interestin HDS through Commtel Holdings Corp. and the acquisition of this interest inHDS by Andes Energia therefore constitutes a transaction with a Related Partyunder the AIM Rules. The Directors of Andes Energia, with the exception of Michael Stevens who isinvolved in the transaction as a related party, and Marcelo Comba, who is adirector of HDS and HASA, consider, having consulted with Arbuthnot SecuritiesLimited, that the terms of the transaction with Commtel Holdings Corp. are fairand reasonable so far as the Andes Energia shareholders are concerned. Further details about Hidroelectrica Ameghino S.A. and the HASA option wereincluded in the re-admission document posted to shareholders on 7 September 2007and are available on the Company's website at www.ragusacapital.co.uk. Luis Alvarez Poli, Chief Executive Officer of Andes Energia, commented, "Thistransaction will add a high quality production asset in Chubut to our existingelectricity distribution business in Mendoza, Argentina, and further extend theplatform for our oil and gas exploration activities in Argentina. Our ambitionto build an integrated energy group takes another step forward." Enquiries: Andes Energia plc Michael Stevens, Chairman T: 020 7495 5326 Nigel Duxbury, Finance Director Arbuthnot Securities James Steel T: 020 7012 2000 Antonio Bossi Bishopsgate Maxine Barnes T: 020 7562 3350Communications Nick Rome This information is provided by RNS The company news service from the London Stock Exchange