Enel to sell its Romanian operations to PPC
Enel S.p.A. (“Enel”) has signed an agreement with Greek company Public Power Corporation S.A. (“PPC”) for the sale of all the equity stakes held by the Enel Group in Romania. The agreement provides that PPC will pay a total consideration of approximately 1,260 million euros, equivalent to an enterprise value of about 1,900 million euros (on a 100% basis). In addition, the total consideration is subject to adjustments customary for these kinds of transactions as well as to an earn-out mechanism for a potential additional payment based on the future value of the retail business.
The overall transaction is expected to generate a total positive effect on the Group’s consolidated net debt of approximately 1.7 billion euros, of which almost 0.1 billion euros in 2022 and the remaining amount in 2023, alongside a cumulative negative impact for 2022-2023 on reported Group net income amounting to approximately 1.4 billion euros[1], of which around 0.6 billion euros related to the release of the foreign exchange reserve to be booked in 2023. Conversely, the transaction is set to bear no impact on Group ordinary economic results.
The closing of the sale, which is expected by the third quarter of 2023, is subject to certain conditions precedent customary for this kind of transactions, including the clearance from competent Antitrust authorities.
The transaction is in line with the Group’s current Strategic Plan, which envisages the repositioning of Enel on higher growth countries where it has an integrated presence, namely Italy, Spain, the United States, Brazil, Chile and Colombia.
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