Santiago, May 2, 2022
ESSENTIAL FACT
Identification of the issuer
Empresa Nacional de Telecomunicaciones S.A.
Open Joint Stock Company
R.U.T. 92.580.000-7
Address: Avda. Costanera Sur N° 2760 Piso 22, Parque Titanium, Torre C, Las Condes,
Santiago.
Registered in the Securities Registry with N° 0162.
This communication is made pursuant to articles 9 and 10 of the Act.
No. 18,045 and is an essential fact with respect to the company, its business, its public offering securities or the offer thereof.
SANTIAGO, May 2, 2022
N° 08-2022 /
Mrs.
Solange Berstein Jáuregui
President
Financial Market Commission
PRESENT REF.: Communicates essential facts or relevant information
From our consideration:
We refer to the communication as an essential fact dated March 18, 2022, by which Empresa Nacional de Telecomunicaciones S.A. (“ENTEL” or the “Company”) reported having signed with companies related to Equinix, Inc. – EQIX on NASDAQ – (hereinafter “Equinix”) a master asset purchase agreement under which it was agreed to dispose in favor of such companies substantially all the assets that make up the Company’s data center business line in Chile; which also included: (a) a long-term service agreement whereby ENTEL would become a customer of the transferred data center business; and (b) a temporary agreement for integration services of the business transferred from ENTEL to the acquirer, hereinafter the “Transaction”. It was also reported that the Transaction also included an exclusivity period to complete the negotiation of similar contracts with respect to the entire data center business in Peru.
Updating the information provided through the essential event identified above, ENTEL hereby informs that, having fulfilled the respective closing conditions, as of today the sale contemplated in the framework agreement for the sale of assets has materialized and, consequently, the sale of substantially all the assets that make up the Company’s data center business line in Chile. Similarly, the agreements identified in subparagraphs have been signed and entered into force. (a) and (b) of the preceding paragraph. As for Peru’s assets and contracts, it is reported that they are in a state of progress pending the fulfillment of a series of closing conditions, which is expected to occur within the next few months.
As a result of the foregoing, with this same date ENTEL has received the payment of the purchase price for the assets of Chile, amounting to a total of UF 16,722,000, equivalent to approximately US$633 million, at the value of the Observed Dollar exchange rate for today, with a payment in Soles equivalent to UF 1,858,000 pending. which at the exchange rate indicated above amounts to approximately US$70.4 million, once the closing conditions for the assets in Peru are met.
Finally, the expected impact of the Transaction on the Company’s consolidated income before taxes is approximately Ps. 540 billion, of which Ps. 483 billion corresponds to Chile and Ps. 57 billion to Peru. Peru’s results will materialize once the closing conditions are met.
Without further ado, he greets you very sincerely,
ANTONIO BÚCHI BUC
General Manager
c.c.: Mr. Superintendent of Pensions
Santiago Stock Exchange, Santiago Stock Exchange
Bolsa Electrónica de Chile, Chilean Stock Exchange
Messrs. Directors
Link to the file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=1f7b7ea223628fe6a846f200ec4ec89fVFdwQmVVMXFRVEZOUkVVelRWUlZNRTEzUFQwPQ==&secuencia=-1&t=1682376108
