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March 1, 2021

Government encourages Enel to stay on local market

The Romanian authorities are ‘encouraging’ Italian energy group Enel to stay on the local market, promising a friendly and transparent business environment, says Gabriel Dumitrascu, head of the Privatisation Directorate from the Energy Department, in spite of the fact that SAPE took action against Enel, Mediafax reports.
Holding one third of the Romanian electricity distribution market, Enel has announced its intention of selling operations in Romania by the end of the year. State-owned companies Electrica and Nuclearelectrica are reportedly interested in some of the assets put on sale by the Italian group.
‘We trust Italian investors, for the simple fact that Enel took some responsibilities under the privatisation agreement which has been fulfilled to a large extent’, Dumitrascu said.
However, the Energy Stock Management Company (SAPE) has taken action against Enel at the International Court of Arbitration in Paris, demanding EUR 521.58 M from Enel, invoking that ‘put’ option according to which Electrica has the right to sell and Enel the obligation to buy a stake of 13.57 per cent of the shares in former Electrica Muntenia Sud, under the price setting mechanism laid down in the privatisation agreement signed in July 2007.
In Romania, Enel’s plan is to sell 64.4 per cent of Enel Distributie Muntenia and Enel Energie Muntenia, 51 per cent of Enel Distributie Banat, Enel Distributie Dobrogea and Enel Energie, as well as 100 per cent of the Enel Romania service company (owned via Enel Investment Holding BV).
Rumours on the stock market suggest Enel might postpone or even renounce selling its Romanian assets altogether, following talks with Minister Delegate for Energy Razvan Nicolescu in Rome last week.

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