The sale of Romanian operations is in line with Enel’s strategic plan to strengthen its position in the countries like Italy, Spain, the US, Brazil, Chile and Colombia, where the company claims to have an integrated presence
Enel agrees to sell its Romanian operations to Greek's PPC. (Credit: Enel Spa)
Italian energy company Enel has agreed to sell its equity stake in its Romanian operations to Greek electric power company Public Power Corporation (PPC) in a deal worth €1.3bn.
The transaction represents an enterprise value of nearly €1.9bn, which includes about €0.3bn of firm value adjustments and approximately €0.35bn of minority interest.
According to the Italian utility, the deal is anticipated to make a total positive impact on the company’s consolidated net debt of about €1.7bn.
The company has been operating in power distribution and supply along with renewable energy and advanced energy services in Romania since 2005.
With 13 wind and solar energy plants, Enel Green Power Romania operates more than 500MW of renewable energy.
The company’s Romanian operations are spread across three key areas of the country, namely Muntenia Sud (including Bucharest), Banat and Dobrogea, providing clean energy to more than three million customers.
Enel stated that the divestiture of its Romanian operation aligns with the company’s strategic plan to refocus in the countries like Italy, Spain, the US, Brazil, Chile and Colombia, where it claims to have an integrated presence.
Enel Group CEO and general manager Francesco Starace said: “With the sale of all our activities in Romania, we continue to implement the disposal plan that was announced during the presentation of Enel’s 2023-2025 Strategic Plan.
“We are proud of the results achieved in Romania since we entered the country in 2005 and we recognise the hard work and dedication of our colleagues, who enabled us to become one of Romania’s main integrated energy operators.”
Subject to clearance from antitrust authorities and certain customary conditions precedent, the deal is anticipated to be close in Q3 2023.