September 2, 2005 – Santiago, Chile.
Quiñenco S.A. (LQ:NYSE) reported the following information today to the Chilean Superintendency of Securities and Insurance (SVS):
1) Quiñenco’s Board of Directors have signed a commitment letter with Deutsche Bank whereby Deutsche Bank will subscribe to 50% of the preferential rights that correspond to Quiñenco’s interest in the future capital increase of Madeco S.A. Under this agreement, Quiñenco and Deutsche Bank would subscribe in equal parts to 100% of Quiñenco’s preferential rights in the capital increase. Quiñenco has deemed it necessary to inform the aforementioned as significant information because if the agreement with Deutsche Bank is formalized, Quiñenco could reduce its current interest in Madeco S.A. to less than 50%, although it would continue to maintain a controlling interest in the company.
2) Should the agreement with Deutsche Bank not materialize, Quiñenco would subscribe to 100% of its preferential rights in Madeco’s capital increase.
Quiñenco S.A., a leading Chilean business conglomerate, is the controlling entity of a portfolio of companies involved in financial services, food and beverage, telecommunications and manufacturing sectors.