Enel has signed an agreement for the sale to the Greek company Public Power Corporation (“PPC”) of all the equity investments held by the Enel Group in Romania. The agreement provides that PPC will pay a total consideration of approximately 1.26 billion euros, corresponding to approximately 1.9 billion in terms of enterprise value (referring to 100%).
Furthermore, the total consideration is subject to adjustments usual for this type of transaction and to an earn-out mechanism concerning a possible additional payment based on the future value of the retail business.
“The sale of all our businesses in Romania is a further step forward in the implementation of the disposal plan announced at the presentation of Enel’s 2023-2025 Strategic Plan,” said the Chief Executive Officer and General Manager of the Enel Group Francesco Starace.
Overall, the transaction is expected to generate a total positive effect on the Group’s consolidated net debt of approximately €1.7 billion, of which approximately €0.1 billion in 2022 and the remainder in 2023, together with a cumulative negative impact in 2022 -2023 on reported Group net income of approximately €1.4 billion, of which approximately €0.6 billion related to the release of the foreign exchange reserve, to be booked in 2023.
On the other hand, the transaction does not have any impact on the Group’s ordinary economic results. The completion of the sale, expected by the third quarter of 2023, is subject to some usual precedent conditions for this type of transaction, including the approval by the competent competition authorities.
The transaction is in line with the Group’s current Strategic Plan, which envisages achieving the repositioning of Enel in the fastest growing countries where it has an integrated presence, namely Italy, Spain, the United States, Brazil, Chile and Colombia.