Endesa's French subsidiary, SNET, has signed an agreement to sell its 23.62% shareholding in power generator Sechilienne-Sidec to UK-based fund manager Ecofin Ltd for E103.6 million.
The deal, equivalent to E320 per share, is contingent on no takeover bids being made for Sidec. If any offers were to be launched, the transaction would be delayed until the end of the acceptance period for the bids under stock market regulations.
Sechilienne-Sidec produces electricity and steam at thermal plants that use coal and sugar cane waste on the islands of Guadalupe and Martinique in the Caribbean and Reunion and Mauritius in the Indian Ocean. It also develops wind energy in France.
Meanwhile, SNET looks set to be in the middle of a Franco-Italian argument. According to Forbes, Enel is unhappy that the French government intends to put out to tender its 35% stake in SNET. The Italian energy giant was expected to be given the SNET share in return for its government increase French company EDF’s voting rights in Edison.