Enel informs that the partial demerger plan of Enel Green Power (EGP) with assignment to Enel of the entire share capital, currently held by EGP, of Enel Green Power North America. and Enel Green Power Development North America, companies operating in the renewable sector in North America, has been published today on the website of Enel (www.enel.com), in the section “Investitori – Governance – Operazioni straordinarie – Scissione parziale di Enel Green Power S.p.A. in favore di Enel S.p.A.”, pursuant to Article 2506-bis, paragraph 5, of the Italian Civil Code. The project was approved by the management bodies of Enel and EGP.

This transaction is part of a broader project aimed at reorganising and streamlining the Enel Group’s activities in North America, to ensure the strengthening of the Enel’s Group leadership in its business segments and, at the same time, the pursuit of the operational efficiency of the services provided to customers in the local market, in line with the Strategic Plan 2019-2021. The implementation of this project provides for EGP the separation of the abovementioned shareholdings in North America from shareholdings and activities related to other geographic areas.

Considering that the share capital of the company to be demerged is entirely owned by Enel, the decision on the demerger will be submitted to the approval of the Company’s Board of Directors, pursuant to the simplified procedure set forth under Article 2505 of the Italian Civil Code (as referred to for demergers by Article 2506-ter, paragraph 5, of the Italian Civil Code), and to Article 20.2 of Enel’s by-laws.

Since Enel holds the entire share capital of EGP, there is no exchange ratio and Enel will not increase its share capital or allocate shares. Likewise, the demerger shall not require any amendment to Enel’s by-laws.

The civil legal effects of the demerger will begin on February 1st, 2020 provided that on such date the last of the registrations of the deed of demerger required under Article 2506-quater of the Italian Civil Code is made or, if later, on the first day of the month following said last registration or on the other subsequent date possibly set out by the deed of demerger.

Enel’s Procedure for transactions with related parties does not apply to this demerger as it is a transaction between Enel and a wholly-owned subsidiary.