The transaction marks Enel's largest international acquisition of generation capacity. Slovenske Elektrarne is the major generating company in Slovakia with 83% of the domestic market, and the second-largest in central and eastern Europe, with a plant portfolio of approximately 7,000MW capacity including nuclear, hydro and thermal.
The sale of the 66% stake in the Slovak power company began with the launch of a call for tenders. On October 7, 2004, Enel was selected as a preferred bidder. The Italian utility paid 20% of the price (E168 million) at the signing of the contract in February 2005. The remainder of E671 million has been paid upon closing, at the same time of the transfer of the controlling stake in SE. The remaining 34% of SE is held by Slovakia’s National Property Fund.
Enel, the National Property Fund and the Slovakia’s ministry for the economy also agreed on the terms of an investment plan aimed at increasing output and enhancing the efficiency and environmental standards of SE’s plant portfolio, contributing to the economic and social development of Slovakia and boosting company profitability. The plan provides for SE’s total volume of investments of about E2 billion between 2006 and 2013.
Fulvio Conti, Enel’s CEO, stated that with this acquisition – Enel’s largest ever outside of Italy – the company confirms its expansion strategy into eastern and central Europe, a market which is recording continental Europe’s highest growth rate. SE is among the best regional power generation companies in Europe, it has a well-balanced production mix made up of nuclear, hydro and coal generation.