Empresa de Distribucion de Occidente & Empresa de Distribucion de Oriente

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In December 1998, Union Electrica Fenosa won the privatization auction for 80% of Empresa de Distribucion de Occidente and Distribucion de Oriente, a distributor carved out of Instituto Nacional de Electrificacion (INDE). INDE's distribution assets, serving most of Guatemala outside the capital, Guatemala City were split into the two entities (Occidente and Oriente) in preparation for the sell-off. Of the remaining 20% stake, 7% was offered to utility workers and 13% offered to individual investors on the local stock exchange. Under the terms of acquisition, Union Fenosa committed to invest US$ 101 million to rebuild, upgrade and expand the transmission and distribution systems in Guatemala's rural areas. Union Fenosa ACEX will manage both companies, which presently distribute power to around 600,000 customers throughout the country. In signing the sale, the Spanish company also acquired the commitment to undertake an ambitious electrification plan to reach 2,600 rural communities and 280,000 new customers within the next five years. The investment required to implement this rural electrification plan will be financed by a trust that will manage funds for $333 million specifically earmarked for this purpose. The $101 million in privatisation revenue, together with other INDE resources, will be used to constitute this fund. In May 2011, Actis announced that it was taking a 90% stake in the Guatemalan electricity businesses of Spain's Gas Natural Fenosa. The deal was valued at $449 million, including the assumption of $104 million in debt. In June 2016, Actis sold its stake in the project to IC Power in a transaction worth US$ 265 million. http://www.miga.org/screens/projects/guarant/regions/lac/Union.htm