It is reported that the signing of a binding agreement (SPA) to acquire its assets is a matter of a few hours. Italian Enel in Romania from checkpoint. Until late at night according to classified informationcontroversial issues of negotiations on its assessment were agreed Enel Romanialegal guarantees, financing and organization of issues related to the participation of the Romanian public in the acquired portfolio.

Price

The valuation of Enel Romania on behalf of PPC was carried out by a consortium of international houses based in Citi and is reported to be worth 1.9 billion euros. The amount that PPC will pay as the price for the acquisition of the 100% subsidiary of Enel in Romania is subject to an agreement between the two parties on loans of around EUR 600 million borne by the acquiree. The price he pays will also depend on the amount of loans PPC will take on. A full takeover would cap the price to 1.3 billion euros and is the main scenario discussed by both sides. Financing will be provided through a syndicated loan, on which the KPP is already negotiating with systemically important banks (Eurobank, Alfa Bank, Piraeus, Ethniki). The amount of the loan under discussion is in the region of 800 million euros. This means €500 million in equity financing if the price is finally set at €1.3 billion.

Three million clients

The acquisition, according to the head of the PPC, “will not change the performance of the business.” With the completion of the acquisition, PPC is acquiring a vertical portfolio in the electricity sector in Romania in the Southeast European single regional market and mainly on the Romania-Bulgaria-Greece axis, which also strengthens the country’s geopolitical position in the region. Enel Romania, in existence since 2005, is one of the largest private investors in the Romanian energy sector. It has about 3,100 employees and serves over 3 million customers.

According to the information, Enel Romania’s valuation is 1.9 billion euros.

E-Distributie companies operate networks with a total length of more than 133,000 kilometers in three important regions of the country: South Muntenia (including Bucharest), Banate and Dobruja, covering a third of the local distribution market. Enel Energie and Enel Energie Muntenia are among the main energy providers in the country and their offer includes electricity and natural gas as well as services.

Enel Green Power Romania is one of the largest renewable energy producers in the country with 534 MW of installed capacity and 5,000 MW of licensed projects. PPC’s green portfolio in Romania will also be enhanced with the 210 MW recently acquired by PPC Renewables from Mytilineos. Enel Romania’s portfolio is also complemented by comprehensive services for industrial and commercial customers for local power generation using photovoltaic panels, as well as advanced e-city and e-home systems through its subsidiary Enel X Romania, which also operates a national network of electric charging stations. vehicles. With this acquisition, PPC will also inherit Enel’s pending lawsuit with the Romanian government to impose a windfall tax on renewable energy.

PPC has dominated among investors interested in Enel’s Romanian portfolio and has started exclusive talks with the Italian company since December last year. The very good knowledge of the Romanian market by Mr. Stassi, who was head of Enel in Romania before taking over PPC in the summer of 2019, has also played a catalytic role in this development.

Italian giant

Enel is pulling out of Romania, Argentina and Peru in a strategic asset sale to reduce its net debt by 21 billion euros by 2024, according to what Italy’s chief executive Francesco Starace officially told analysts. In Greece, Enel is also looking for a strategic investor for its investment program. The deal to sell Enel Romania is likely to be the last signed by Mr. Starace before he ends his job at the Italian state giant, which plans to invest about 37 billion euros over the next three years in the key markets of Italy, Spain and the US. , Brazil, Chile and Colombia.