AES Gener to Sell GasAndes Stake by July

Chilean power generator AES Gener plans to sell its 13% stake in natural gas transporter GasAndes by July, AES Gener CEO Felipe Ceron told reporters Wednesday. "We are talking to interested parties about selling our participation," Ceron said.

Fellow shareholders France's Totalfinaelf (56.5%), Argentina's CGC (17.5%) and Chilean natural gas distributor MetroGas (13%) are not interested in buying AES Gener's stake, he added. AES Gener will probably sell to an Argentine gas producer, and will contact potential buyers directly, Ceron said. The asking price would be higher than the US$26mn book value, he added.

"GasAndes is an expendable asset that is not part of our main business, and we would not miss it," Ceron said, adding that the sale is part of the company's strategy to focus on electricity generation in Chile rather than expanding in the oil and gas sector. The 463km GasAndes pipeline transports natural gas from Argentina's Neuquen basin to Chilean capital Santiago.

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