Published Wednesday 23rd, January 2008.
Article Category: Announcements
SummaryGovernment of Mendoza has passed a decree authorising an increase in electricity tariffs.
Andes Energia plc
(“Andes” or “the Company”)
Tariff Increase and SODEM S.A. Acquisition
Andes Energia plc (AIM:AEN), the Latin American energy group, is pleased to announce that the Government of Mendoza has passed a decree authorising EDEMSA to adjust electricity tariffs by an increase in the range of between 10% and 27% to be implemented on 1 February 2008. The Government also announced that further adjustment will be approved and granted in the year.
In addition, and further to the announcement on 10 December 2007, Andes announces that it has given notice of its intention to acquire a further 50 percent. indirect interest in SODEM S.A. (“SODEMSA”).
On completion of the acquisition, Andes will own the entire issued share capital of SODEMSA, which has a 51 per cent. controlling interest in Empresa Distribuidora de Electricidad de Mendoza S.A (“EDEMSA”), the main electricity distribution company in the Province of Mendoza.
Luis Alvarez Poli, Chief Executive Officer of Andes commented, “The tariff adjustment and the completion of the acquisition of 100% of SODEMSA consolidates Andes’s strategy. The two electricity assets, EDEMSA and HASA, provide Andes with a unique partnership with the Governments of Mendoza and Chubut, putting the Company in a privileged position to expand its energy portfolio in the rapidly growing Argentinean electricity market”.
Andes Energia plc
Luis Alvarez Poli, Chief T: 020 7495 5326
Nigel Duxbury, Finance Director
James Steel T: 020 7012 2000
Bishopsgate Communications Limited
Maxine Barnes T: 020 7562 3350
Notes to Editors
Andes Energia is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company joined AIM through a reverse takeover of Ragusa Capital plc. The Company’s focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.