Enel to sell its power generation assets in Romania

The Chief Executive Officer of Enel SpA (“Enel”) informed the Board in a meeting Wednesday under the chairmanship of Patrizia Grieco that, as part of 2014-2018 Business Plan programme, possible sales by the Group would include its generation assets in Slovakia and its distribution and sales assets in Romania. The sale programme is implemented to strengthen the Italian Group’s financial structure.According to a press release, in Romania, the sale would involve the 64.4 percent stake in Enel Distributie Muntenia SA and Enel Energie Muntenia SA, the 51 percent stake in Enel Distributie Banat SA, Enel Distributie Dobrogea SA and Enel Energie SA, as well as the 100 percent interest in the services company Enel Romania Srl (held by Enel through Enel Investment Holding BV). these companies manage a power grid of about 91,000 kilometres in the regions in which they operate, distributing about 14 TWh of electricity a year (with a domestic market share of 34 percent) and selling nearly 9 TWh a year to about 2.6 million customers, of which 2.4 million are residential customers (with a domestic market share of 20 percent) and 0.2 million are businesses (with a domestic market share of 38 percent). The Italian investor specified that in 2013, those companies had revenues of EUR 1,118 million and EBITDA of EUR 289 million (consolidated figures).‘In the last few days the Enel Group has formally notified the subsidiaries in both Slovakia and Romania, as well as their minority shareholders (state-controlled companies or entities) of the start of the sale process and has appointed the financial advisors (BNP Paribas and Deutsche Bank for the Slovakian assets and Citigroup and UniCredit for the Romanian assets) and legal counsel that will be providing support for the operation. Additionally, the Enel Group will duly provide relevant information on the aforementioned sale processes to Governments and authorities in charge of the respective countries’, the statement reads.The sale of the holdings in Slovakia and Romania are part of a broader EUR 6 billion programme of asset sale begun in 2013, aimed at reducing the Enel Group’s financial debt. To date, some EUR 1.6 billion in sales have been completed. The Slovakian and Romanian assets, together with other non-strategic assets, will contribute more than the residual target of EUR 4.4 billion, giving the programme a necessary degree of flexibility.Minister for Energy, Nicolescu: ‘No surprise’All the commitments pledged by Italy’s Enel under privatization contracts must be further fully observed, Minister-delegate for Energy Razvan Nicolescu said in a statement issued at the request of Agerpres. ‘Plans of the new management of Enel Group to reduce their presence abroad is no surprise for us. As far as the Romanian state is concerned, we want all commitments pledged by Enel under the privatization contracts to be further fully observed. The Energy Department takes all action to this effect,’ said Nicolescu.

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