After more than half a year of negotiations, the Italian utility group Enel announced that it is selling its operations in Romania to Public Power Corp. PPC is the largest utility company in Greece. The value of the transaction is estimated at 1.26 billion euros. Enel will focus its future activity within a plan aimed at debt reduction and the promotion of renewable resources.
“The agreement provides for the payment by PPC of a total amount of approximately 1.260 billion euros, which values the sold companies at approximately 1.9 billion euros (100% of the shares). In addition, the total amount can be adjusted according to the usual clauses in such transactions as well as through a mechanism for potential subsequent payments, depending on the future value of the retail activity”, an Enel press release states.
The transaction is in accordance with the current Strategic Plan of the Enel Group, which aims to focus on 6 target countries with high growth potential and in which it has an integrated presence, namely Italy, Spain, the United States, Brazil, Chile and Colombia.
The completion of the transaction, expected in the third quarter of this year, is subject to conditions commonly encountered in this type of agreement, including the permission of the competent antitrust authorities.
It is estimated that the transaction will generate a positive effect on the Group’s net liabilities, which will decrease by approximately 1.7 billion euros, of which almost 0.1 billion euros in 2022 and the rest in 2023, in addition to a cumulative negative effect on the Group’s net profit of approximately 1.4 billion euros in the period 2022-2023, of which approximately 0.6 billion euros from reserves related to exchange rate differences, which will be accounted for in 2023. Consequently, the transaction does not is to have any impact on the Group’s current economic results, the company states.
“By selling all activities in Romania, we are continuing the asset sale plan presented 3 months ago as part of Enel’s 2023-2025 Strategic Plan. We are proud of the results achieved in Romania since entering the country in 2005 and we appreciate the hard work and dedication of our colleagues, which allowed us to become one of the most important integrated players in the field of energy in Romania. We are confident that an important international group like PPC will continue this success story”, said Francesco Starace, CEO and General Manager of the Enel Group.
The transaction is in line with the Group’s current Strategic Plan, which aims to reposition Enel and focus on countries with a high growth rate and in which it has an integrated presence.
The Enel Group is a major player in energy in Romania since 2005, with activities in the distribution and supply of electricity, in the field of energy production from renewable sources through capacities of over 500 MW operated by Enel Green Power Romania, as well as in the field of services advanced energy. The distribution companies of the Group in Romania are present in three important regions of the country, namely South Muntenia (including Bucharest), Banat and Dobrogea, serving a total of over 3 million customers. Enel Energie and Enel Energie Muntenia are major suppliers of electricity and natural gas, as well as value-added services. In Romania, the Group also has activities through Enel X in the field of intelligent services for homes, energy production at the point of consumption and energy efficiency, and through Enel X Way in the field of electric mobility.