PSEG pulls the plug on Edersa

12 March 2004 – US power company PSEG has reached an agreement to sell its last remaining stake in an Argentine company, said spokesperson Paul Rosengren speaking to Business News Americas. PSEG’s Chilean subsidiary distributor Saesa has an agreement to sell its 50 per cent stake in Argentina’s Rio Negro province distributor Edersa to the Camuzzi group, Rosengren said.

The agreement is pending regulatory approval by Argentine authorities. Camuzzi already owns the other half of Edersa. Argentine news media Infobae reported the deal could be worth $12mn-15mn but Rosengren would not comment on the details of the agreement.

If the Edersa sale goes through, PSEG will have washed its hands of its Argentine investments, after abandoning its stake in Entre Rios distributor Edeersa in March 2003.

Back in Chile, PSEG could also be interested in selling 100 per cent of Saesa “if the price is right,” Rosengren said. PSEG is not interested in selling only part of the company, he added. “We like Saesa and it’s working well for us but that doesn’t mean that if someone came in with a great offer we wouldn’t entertain it,” he said. Rosengren would not comment on whether PSEG is currently negotiating with any company to sell Saesa.