Under the agreement, Enel Produzione will sell to Dolomiti Energia, 51% of a newly incorporated company called Hydro Dolomiti Enel.
Before the sale, Enel Produzione will contribute its hydroelectric generation operations in the province of Trento to Hydro Dolomiti Enel, while Enel Rete Gas will transfer 100% of Avisio Energia, which distributes natural gas in 32 municipalities in the province of Trento, to the newly formed company.
The operations being contributed to Hydro Dolomiti Enel include 14 concessions for major hydroelectric derivations and 22 power plants with a total capacity of 1.4GW and an annual output of 3.6TWh, as well as seven mini-hydro plants with a total capacity of 14MW, with an annual output of about 46GWh.
The price for the 51% stake in the newly-formed company being sold to Dolomiti Energia, has been provisionally set at E562.7 million and will be paid in full at the time of the sale. This amount will later be adjusted, mainly based on the difference between the estimated value of production and the actual production at the unit during the 2008-10 period.
Completion of the transaction is subject to the extension of the concessions for major hydroelectric derivations that will be contributed to Hydro Dolomiti Enel, which are scheduled to expire on December 31, 2010, by at least 10 years.
