Eurogen sale pleases both parties

19 March, 2002 – Both sides involved the sale of Enel’s Eurogen generating unit to the Edipower consortium expressed satisfaction following the announcement of the €3.7bn deal yesterday.

Edipower is 40 per cent owned by Edison, whose chairman Umberto Quadrino said, “We are very satisfied. The price is good, because compared with the first genco, Eurogen has greater capacity,”

Last year, Enel sold off the first of three generating companies, Elettrogen, to Spain’s Endesa SA for ?2.63bn plus ?1.06bn in debt. Elettrogen controlled 5500 MW.

The Eurogen group has 7008 MW of generating capacity and Quadrino said that the acquisition of Eurogen would increase Edison’s productive capacity by 50 percent and help it reach a 14 000 MW capacity target in the next five years.

The Fiat group and Electricite de France control Edison.

Commenting on the deal. Enel chairman Chicco Testa said that the price had exceeded analysts’ expectations. “With gains from the Eurogen (sale) we will reduce debt,” he said.

According to preliminary 2001 results released by Enel at the end of January, its net debt stood at €22.1bn at the end of 2001.

Edipower is owned 40 per cent by Edison, 13.4 per cent by Aem, 13.3 per cent by Aem Torino, 13.3 per cent by Aar e Ticino Sa di Elettricita (Atel), 10 per cent by UniCredito Italiano, 5 per cent by Interbanca and 5 per cent by a subsidiary of Royal Bank of Scotland)

The deal requires Edipower assuming ?750m in debt.

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