Nicaragua buries hatchet in US$10.2 million deal with Fenosa

The Nicaraguan government and Spain's Unión Fenosa closed a stormy chapter in their relationship with a deal in which the government is to take a 16 percent stake in Fenosa.

Friday, May 30, 2008

In return the government will write off the US$10.2 million debt that it is owed by Fenosa, the country's leading distributor of electricity.
"Fortunately everything turned out for the best in the end, after six hours of negotiations," said Fenosa spokesman Jorge Katín.
The deal ended weeks of friction between the two sides, in which Fenosa was reported to be planning to sue the government and President Daniel Ortega condemned the company in the harshest of terms.

More on this topic

Ortega claims Fenosa 'has declared war on Nicaragua'

May 2008

President Daniel Ortega of Nicaragua said Spain's Unión Fenosa is "practically declaring war on our country".

He added that he would nationalize the company, Nicaragua's leading electricity distributor, unless it agreed to let the government take 16 percent stake in it.

The Government of Nicaragua hopes that within a week it will sign an agreement to by 16 per cent of Unión Fenosa

April 2008

The Government of Nicaragua hopes to sign a memorandum of understanding before month-end with Union Fenosa to acquire 16 percent of the shares of its affiliate in Nicaragua, Emilio Rappaccioli, Minister of Energy and Mines, has said.

The ministry said that the government of Daniel Ortega wants to have a representative on the board of directors who will be more than a figurehead.

Union Fenosa says it is waiting for Nicaragua to sign the purchase

April 2008

The president of Union Fenosa, Pedro López Jiménez, said today in Madrid that his company is waiting for the Nicaraguan government to sign the agreement to close the deal for the sale of 16 per cent of its electrical business in Nicaragua.

"The situation is that there is an agreement prepared that lacks only the signature," López said following a shareholders meeting.

Ortega still waiting for seat on Fenosa board

April 2008

Nicaraguan President Daniel Ortega said his government is still waiting to have a seat on the board of the local unit of Unión Fenosa, as previously agreed with the Spanish power company.

Emilio Rappacioli, the energy minister, announced recently that Fenosa had agreed to the government taking a 16 percent stake and a seat on the board of the unit, which distributes electricity throughout Nicaragua.

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