Enel puts off the sale of Romanian operations

Italian group Enel has put off the sale of the Romanian assets, its representatives told to www.economica.net. The decision is, however, temporary, according to the company's press office.

“Enel confirms that the sale of its Romanian assets has been temporarily suspended. The sale of Enel Romania's assets was part of a broader programme of transactions aimed at attracting up to 4 billion euro by the end of 2014, in view of reducing the net consolidated debt. As a result of several successful initiatives carried out throughout 2014, this target has been achieved,” states an official response of Enel sent to Economica.net

Under these circumstances, the company's press representatives explained that a decision regarding this matter will be taken by Enel's Board, so further details will be released in March, 2015.

Last year in July, Enel made public its intention to dispose of the assets held in Romania and Slovakia, as part of its strategy of consolidating the financial structure.

The domestic assets subject of the potential sale included the 64.4 percent stake in Enel Distributie Muntenia and Enel Energie Muntenia, the 51 percent stake in Enel Distributie Banat, Enel Distributie Dobrogea and Enel Energie, as well as the whole interest in Enel Romania which is controlled by Enel through Enel Investment Holding.

The transactions should have been completed last year, according to the initial timetable, yet, in the meanwhile, official sources talked about a possible abandon of the sale of the Romanian operations, as the targeted amount to be raised, some 1.8 billion euro, was unlikely to have been obtained.

Enel is Italy’s largest power company and Europe’s second listed utility by installed capacity with operations in 40 countries across four continents. The group entered the domestic market in 2004 when bought the majority stake (51 percent) in Electrica Banat and Electrica Dobrogea in the first privatization in Romania’s power distribution sector, transaction completed in April 2005.