Italy’s biggest utility is looking to sell its assets in Europe and Africa and the company has successfully completed 40 per cent of its initial €2bn first-phase divestment programme.
Enel is taking the action as its growth slows amid weak demand in Italy and Spain, Bloomberg reported.
A spokesperson for the company confirmed, “Enel is exploring potential asset disposals.” She added that “small and medium-sized transactions will be an integral part of any activity.”
Enel is working with financial advisers on the possible sale of its upstream operations in Algeria, Egypt and Italy while it may also sell its renewable energy assets in Portugal, Bloomberg reported insiders as saying. The package of upstream assets and Portuguese assets may each fetch as much as €500m they said.
No final decision has been made and the company could still decide against the sale of either business, they added.
In terms of the divestment programme in general, public information from Enel shows that the first phase of divestment entails disposals amounting to €2bn. Of that €2bn around 40 per cent has now been completed.
It states, “An additional €3bn of disposals are expected to be realized during the plan period, of which €2bn have been already identified and around €1bn of additional assets will be identified amongst the current portfolio in the next years
The €2bn divestment so far includes the sale to GE Energy Financial Services of a 49 per cent stake in a newly created company, EGPNA Renewable Energy Partners, which holds a 760 MW portfolio of renewable assets in North America; the agreement for this sale was signed at the end of March.
The company also sold its stake in SE Hydropower S.r.l. to SEL – Società Elettrica Altoatesina in November 2014, which was completed on April 15th.
Further divestment is expected through the impending sale of Enel’s 66 per cent stake in the Slovak generation company Slovenske elektrarne
for which binding offers are expected by May 9th, 2015.
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