March 9 (SeeNews) - Italian energy group Enel said on Thursday that it signed a binding agreement to sell its operations in Romania to Greek utility Public Power Corporation (PPC) for some 1.26 billion euro ($1.328 billion), equivalent to an enterprise value of about 1.9 billion euro.
The total consideration is subject to adjustments and an earn-out mechanism for a potential additional payment based on the future value of the retail business, Enel said in a press release. The sale is expected to close in the third quarter of 2023 and is subject to certain precedent conditions, including clearance from the relevant antitrust authorities.
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“With the sale of all our activities in Romania, we continue to implement the disposal plan that was announced during the presentation of Enel’s 2023-2025 Strategic Plan,” said Enel Group CEO and general manager, Francesco Starace. The plan seeks a repositioning to higher growth countries, where the group has an integrated presence, namely Italy, Spain, the U.S., Brazil, Chile and Colombia.
In February, PPC announced that it was extending the exclusivity period for negotiations on the acquisition of Enel's assets in Romania until February 28, following its January announcement about completing due diligence for the acquisition by mid-February. In November, Enel announced plans to sell its Romanian assets in 2023.
In Romania, Enel operates on the supply segment through Enel Energie and Enel Energie Muntenia, on the distribution segment through E-Distributie Banat, E-Distributie Dobrogea and E-Distributie Muntenia and on the production segment, through Enel Green Power Romania. The group also operates in home services, distributed generation and energy efficiency with Enel X and in the e-mobility segment with Enel X Way.
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