MADRID, 9 Mar. (EUROPA PRESS) -
Enel has signed an agreement with the Greek company Public Power Corporation (PPC) for the sale of all the shares it owns in Romania, a market in which it has been present since 2005, in exchange for a total consideration of approximately 1,260 million euros, according to The Italian has reported in a statement.
The closing of the transaction, which is expected in the third quarter of 2023, is subject to certain conditions precedent customary for this type of operation, including the authorization of the competent antitrust authorities.
In addition, the total consideration is subject to the usual adjustments for this type of transaction, as well as an earn-out mechanism for a possible additional payment based on the future value of the retail business.
The Italian 'utility' has indicated that the sale of its operations in Romania is in line with Enel's strategic plan, which contemplates the repositioning of the company in faster-growing countries where it has an integrated presence, including Italy, Spain, the United States , Brazil, Chile and Colombia.
Enel expects the transaction to generate a positive effect on its consolidated net debt of approximately 1.7 billion euros, of which almost 100 million euros in 2022 and the remaining amount in 2023, together with a cumulative negative impact between 2022-2023 on the net income of approximately 1.4 billion, including around 600 million from the release of the foreign exchange reserve to be recorded in 2023.
On the contrary, the Italian company anticipates that the transaction will not have an impact on the ordinary economic results of the Group.
"With the sale of all our activities in Romania, we continue to implement the divestment plan that was announced during the presentation of Enel's 2023-2025 Strategic Plan," Enel CEO Francesco Starace said.