On Thursday morning, PPC announced its agreement to acquire Italian energy giant Enel’s operations in Romania.

As Cathimerini wrote, PPC has entered into a binding agreement with Enel SpA to acquire all shares held by Enel and its subsidiaries in Romania, for a total amount of approximately EUR 1.26 billion (based on a total business value of approximately EUR 1.9 billion). The total amount of remuneration is subject to regular adjustments and includes a mechanism for earning in the context of a possible additional payment based on the future increase in the value of trading activities.

The acquisition is expected to be completed by the third quarter of 2023 and will be subject to certain conditions common to such transactions, including but not limited to approval by competent competition authorities, PPC said.

He even added that this acquisition is a major milestone for PPC’s growth strategy, with the acquisition of a significant portfolio of renewable energy (both operating and maturing projects) and distribution and marketing activities leading the store. This acquisition also marks PPC’s first major overseas expansion.

PPC intends to finance the acquisition through a combination of debt and equity on its balance sheet, of which €800 million will come from debt financing already secured, available as a €485 million five-year loan from Greek banks, as well as a bridge loan in the amount of 315 million euros from international banks.

Citigroup Global Markets Europe AG, Goldman Sachs Bank Europe SE and HSBC Continental Europe are acting as financial advisors and Milbank LLP as legal advisor to PPC in the context of the Acquisition.

“This acquisition is fully in line with what we presented in November 2021 in the context of our strategic plan, which included our international expansion in the South East Europe region, and therefore Enel’s activities in Romania are an ideal choice both geographically and in terms of business perspective,” said PPC President and CEO Giorgos Stasis.

“This is a unique opportunity to acquire a vertically integrated energy company with an attractive valuation that lays the foundation for PPC’s transformation into a leading clean energy company in South East Europe. We are confident that this important event will contribute to the development and competitiveness of PPC both internationally and domestically, which will benefit our customers and ultimately create value for all stakeholders,” he added.

On Thursday at 19:00 PPC will hold a conference call with institutional investors and analysts to discuss an agreement to acquire Enel’s assets in Romania.

Source: RES-IPE