Empresa de Distribucion Electrica de Guatemala (EEGSA)

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A consortium of Spain's Iberdrola Energy, TECO Power Services of Florida and Electricidad de Portugal on July 29, 1998 acquired from the Guatemalan government an 80% interest in the distribution assets of Empresa Electrica de Guatemala (EEGSA). All existing power purchase agreements were grandfathered into the ownership transfers. EEGSA's distribution business serves about 511,000 customers in the departments of Escuintla, Sacatepequez and Guatemala City and also owns a small amount of transmission assets. In 1997 EEGSA sold 2,829 GWh representing about 65% of the country's consumption. The sale reduced the government's ownership of EEGSA from 92% to 12%, and those remaining shares were to be offered for sale on the local stock exchange in early 1999. The other 8% of EEGSA is held by private investors. The Iberdrola group's bid of $520 million beat out three other offers and far exceeded, by as much as $200-million, what the government expected to earn from the sale. The new owners expect to spend some $100 million over the next 10 years modernizing the system. Iberdrola holds a 49% stake in the buying consortium, TECO has 30% and EdP 21%. Nations Bank and others joined in offering a syndicated loan to partially finance the project. In Jul. 2000, EEGSA was granted a US$ 200 million 7-year loan. On October 21, 2010 Colombian company Electrica de Medellín - EDM acquired Empresa Electrica de Guatemala (EEGSA)and associated generation,transmission,distribution and commercialization electricity assets in Guatemala from Iberdrola, TECO and Energias de Portugal - EDP fo US$ 635 million.

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