The deal, which will be executed in two phases, will implemented through the transfer of the stake to a newly established company, known as HoldCo.

Enel Produzione will initially sell 50% of the share capital of HoldCo to EP Slovakia for €375m in the first phase.

Upon completion of the first phase, Enel will deconsolidate Slovenske Elektrarne from its accounts, resulting in €375m net debt reduction.

The second phase involves a put or a call option, which if exercised would allow Enel Produzione to transfer the remaining 50% of the HoldCo’s share capital to EP Slovakia for €375m.

The second phase is however subject to EP Slovakia obtaining the final operation permit for the units 3 and 4 of the Mochovce nuclear plant expected in 2019.

The sale is part of Enel’s active portfolio management program which aims to refine the strategic focus of its asset portfolio, reduce business risk, recycle capital for redeployment in order to drive higher returns, and freeing up resources to fund further growth.

The transaction is also subject to clearance from the European Union’s antitrust authorities.

Separately, the Slovakia Government, which already has 34% stake in SE, is negotiating with Enel to acquire a further 17% in the company.