Rurelec gets 142m dollar valuation on Bolivian assets – MoneyWeek

TheBoliviangovernmentforciblytransferredRurelecssubsidiary,EmpresaGuaracachi,tothestatepowerfirm,ENDE,onMay12010aspartofthesocalledMayDayprogrammewhichbroughtintostateownershipallthreeoftheprivatepowergenerationcompanies。

ThereisanexistingtreatybetweentheUKandBoliviawhichthefirmsaysprotectsallBritishcompaniesandguaranteespaymentofmarketvalueintheeventofcompulsorystatenationalisation。

PeterEarl,ChiefExecutiveofRurelec,said:Iampleasedtoreportthatthe$142。

2mvaluationofourtotalclaimsvindicatesoureffortstoseekfullcompensationforthelossofGuaracachi。

WehopethatBoliviawillnowpaythecompensationthatitowesRurelecforthenationalisationofGuaracachitoenabletheRurelecgrouptoreinvestinreplacementpowergenerationassetsinLatinAmerica。

Headded:Intheeventofasettlement,wearecommittedtousingpartofanyproceedstoasignificantbuy-backofRurelecsharesinordertoreversesomeoftheequitydilutionsufferedbyshareholders。

Rurelecshareshadgained1。

3%by11:39inLondon。

Sincethenationalisation,thestockhasdropped35%。

BS

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