The signing of a binding agreement for Public Power Corporation to acquire the assets of its Italian peer Enel in Romania is said to be a matter of hours.
By late on Tuesday, according to reliable information, all tough aspects of the negotiations, related to the valuation of Enel Romania, legal guarantees, financing and arrangements of issues related to the participation of the Romanian public in the portfolio under acquisition, had been finalized.
The valuation of Enel Romania on behalf of PPC was carried out by a consortium of international firms centered on Citi, and according to information it amounts to 1.9 billion euros. The amount that PPC will pay as a price for the acquisition of 100% of Enel’s subsidiary in Romania depends on the agreement between the two sides for the loans of approximately €600 million borne by the company under acquisition. The price it will pay will also depend on the amount of loans that PPC will take on. A full takeover on its part will limit the price to €1.3 billion and is the main scenario that the two sides are discussing.
The financing will be through a syndicated loan for which PPC is already in negotiations with systemic banks (Eurobank, Alpha Bank, Piraeus, National). The amount of the discussed loan is in the region of €800 million. This means equity financing of €500 million in the event that the price is finalized at €1.3 billion.
The acquisition, according to what the head of PPC has told Kathimerini, “is not going to change the fundamentals of the company.”
With the completion of the takeover, PPC will acquire in Romania a vertical portfolio in the electricity sector in the single regional market of Southeastern Europe and mainly on the Romania-Bulgaria-Greece axis, which also strengthens the country’s geopolitical position in the region.
Enel Romania, present since 2005, is one of the largest private investors in the energy sector in Romania. It employs approximately 3,100 people and serves more than 3 million customers. Furthermore, Enel Green Power Romania is one of the largest renewable energy producers in the country, with 534 megawatts of installed capacity and 5,000 MW of licensed projects.
