Empresa Nacional de Electricidad: Significant Event

The following excerpt is from the company's SEC filing.

In accordance with articles 9 and 10, paragraph 2 of Law 18,045 and the provisions of General Norm N° 30 of the Superintendence, and duly authorized, I hereby inform you of the following significant event:

Pursuant to the first paragraph of section iii) of subparagraph e) of Section I of the Reconciliation Act, executed on June 18, 2013, by Southern Cross Latin American Private Equity Fund III, LP (Southern Cross), and Empresa Nacional de Electricidad S.A. (Endesa), under the arbitration under direct surveillance of Judge Víctor Vial del Rio, CAM No. 1566-2012, the Board of Directors of Endesa in ordinary session held on March 31, 2014, agreed to accept the Southern Cross offer regarding the direct sale and disposal of all social rights that this company holds over Inversiones GasAtacama Holding Limitada, and the assignment of the promissory note that company Pacific Energy Sub Co. currently holds from Atacama Finance Co., which is documented in the note dated January 16, 2013, for a current total amount of US$ 28,330,155.

The total purchase price for the assets mentioned amounts to US$ 309,000,000, payable in same day funds in United States dollars, by transfer to the account that Southern Cross will indicate in due course.

The parties will have up to 30 calendar days starting from today for the execution of the documents and the closing contracts of the transaction.

As of December 2013, GasAtacama reported an EBITDA of US$ 114 million and a net profit of US$ 69 million. In addition, the company has a cash position, cash and cash equivalents, and financial assets amounting to US$ 222 million. The company’s financial debt with shareholders totals US$ 56.6 million. As a result of the acquisition, Endesa Chile will consolidate in its income statement 100% of GasAtacama, whereas before this it was accounted under the equity method.

SIGNATURES                 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   EMPRESA NACIONAL DE ELECTRICIDAD S.A.     BY:   /S/ JOAQUÍN GALINDO V.         Joaquín Galindo V. Chief Executive Officer     Dated:  March 31, 2014                        

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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