Empresa Distribuidora de Electricidad La Rioja

Active

The company distributes electricity in La Rioja Province, in western Argentina. The company has a concession area of about 55,625 square miles to about 30,000 customers. The total population in its concession area is about 220,000. The company buys all the electricity it distributes on the spot market. The company was privatized in May 1995 when a 90% equity stake was sold for $13.7 million to Electrica La Rioja, a consortium of Grupo Union Fenosa Inversiones and Electric Holding. The winning consortium committed to invest between $35 million and $40 million during its first five years of operation. In 1998, the US company GPU International purchased a 100 per cent stake in Edelar and two other distribution companies that belong to the holding company Empresa Distribuidora Electrica Regional (Emdersa). In 2001 GPU International merged with First Energy and therefore control over Emdersa (parent company of Edelar) moved to First Energy. In April 2003, in response to the peso devaluation, First Energy spun off Emdersa –the holding company of electricity distributors Edesal, Edelar and Edesa. In September 2005, Emdersa was acquired by a group of local (40%) and U.S. investors (60% Nextar fund). In 2009, Ashmore Energy International [USA] increased its shareholding to 77.10% of Emdersa, the parent company of Empresa Distribuidora de San Luis SA, or EDESAL (project #749), Empresa Distribuidora de La Rioja SA, or EDELAR (project #506), and Empresa Distribuidora de Salta SA, or EDESA (project #96) for approximately US $82 million. In March 2011, AEI sold its shares in holding company EMDERSA to Pampa Energia SA [Argentina] through Pampa's subsidiary Edenor.

High