Enel sale of Milan grid finalized

30 October 2002 – Italy’s Enel power group said Tuesday its planned sale of Milan’s electricity grid to the city’s municipal utility AEM Milano SpA will be effective Friday

The two companies said in August the transaction was concluded for €423.5m, or the price determined in March last year by an independent panel.

However, Enel appealed to a Milan court seeking an upward revision of that price. Therefore the sale price could change, subject to the tribunal ruling.

Enel, which must sell its municipal grids to local operators as a part of the market’s liberalization, believes the panel’s valuation was too low.

ENEL and AEM said they would try to settle their dispute out of court.

Rome utility Acea SpA (I.ACE) bought municipal electricity networks serving Rome and the adjoining municipality of Formello, from state-controlled Enel in March 2001 in a transaction valuing the assets at some €568m.

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