about us | newsletter | contact | archive | members area

»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Enel acquires 13.6 per cent of the Romanian subsidiaries E-Distributie Muntenia and Enel Energie Muntenia

Enel S.p.A. (Enel) announces that its wholly-owned subsidiary Enel Investment Holding B.V. (EIH) has today finalised the acquisition from SAPE S.A. (SAPE, the Romanian state-owned holding company that owns state shareholdings) of around 13.6 per cent of the share capital of E-Distributie Muntenia S.A. (EDM) and Enel Energie Muntenia S.A. (EEM) for a total consideration of about 400 million Euro.

2017-04-10 15:11:58

Following the transaction, EIH has increased its interest in EDM and EEM to about 78 per cent of each company's share capital, from the 64.4 per cent held previously.

EIH's acquisition of an additional 13.6 per cent of EDM and EEM's share capital is a consequence of SAPE exercising a put option in November 2012. With the exercise of the put option, SAPE had asked for a price of about 520 million Euro, amount which was contested by EIH. After failing to reach an agreement on the price for the equity interests, in 2014 SAPE began an arbitration proceeding before the International Chamber of Commerce in Paris, in which it lodged a claim for the above price and about 60 million Euro in interest.

In its ruling of February 3rd, 2017, the Arbitral Tribunal set the purchase price for the equity interests involved in the put option at about 400 million Euro, reducing the amount requested by SAPE by more than 100 million Euro and dismissing the request of interest.

For accounting purposes, the price set by the Arbitral Tribunal for about 13.6 per cent of EDM and EEM share capital is lower than the 448 million Euro recognised so far in respect of those two participations in the Enel Group's consolidated financial statements. In addition, as the transaction involves a business combination in respect of an acquisition carried out in 2008, the purchase has no impact on the consolidated income statement, while it increases consolidated net financial debt by the above mentioned 400 million Euro amount.

The above transaction is consistent with the drivers of the 2017-2019 Strategic Plan represented by the active management of the Enel portfolio, which provides for the use of around 2 billion Euro for the acquisition of minority shareholdings (in addition to a possible share buy-back). The price set by the Arbitral Tribunal for about 13.6 per cent of EDM and EEM share capital is also consistent with the projections set out in the 2017-2019 Strategic Plan for the evolution of consolidated net financial debt.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  6604 Views
Daily Info
European Investment Bank celebrates 25 years in Romania with 13 billion Euro for economic and financial support

The European Investment Bank (EIB) has approved more than 13 billion Euro worth of financing and advisory services for Romania since it started its operations in the country 2...

E-Distributie Dobrogea invests 12 million RON for the modernization of the Abator primary station in Constanta

E-Distributie Dobrogea has begun an investment project worth around 12 million RON (2.6 million Euro) to modernize the primary station (high/medium voltage) Abator in the city...

Telekom Romania and Alior Bank launch Telekom Banking

Telekom Banking, a digital financial project in Romania, developed within the partnership between Telekom Romania and Alior Bank, one of the largest banks in Poland, aims to m...

ADM Capital sells Brikston Construction Solutions to Wienerberger AG

ADM Capital, an international private equity fund, acquired a 98 per cent stake in Brikston Construction Solutions (Brikston) in July 2014 and has agreed to sell its full shar...

PM Tudose: We will shortly come up with new form of split VAT collection

A new form of split VAT collection, which will respond to the requests made in this period by business representatives, will be presented shortly, Prime Minister Mihai Tudose ...

 
 
   
advertising

advertising

advertising

advertising

advertising

advertising

More on News
Iohannis: Advanced presence on Eastern Flank must be reinforced, especially in Black Sea

President Klaus Iohannis stated on Monday that the advanced presence on NATO's Eastern Flank must be reinforced.

MAE requests Ukraine to adopt necessary measures so that Romanians learn in their mother tongue

The Foreign Affairs Ministry (MAE) announced that it will continue to take steps with the international authorities to signal the negative impact of the legislative amendme...

Romania initiates first meeting of EU Council Presidencies' Trio with Finland and Croatia

Minister-Delegate for European Affairs Victor Negrescu has initiated on Monday in Brussels, the first, minister-level meeting of the Trio of Presidencies that Romania is du...

PM Tudose: We will shortly come up with new form of split VAT collection

A new form of split VAT collection, which will respond to the requests made in this period by business representatives, will be presented shortly, Prime Minister Mihai Tudo...

Romania's inflation rate up to 1.8 percent in September, says INS

The annual inflation went up in September to 1.8 percent from 1.2 percent in August, according to data of the National Institute of Statistics (INS), as reported by Agerpre...

E-Distributie Dobrogea invests 12 million RON for the modernization of the Abator primary station in Constanta

E-Distributie Dobrogea has begun an investment project worth around 12 million RON (2.6 million Euro) to modernize the primary station (high/medium voltage) Abator in the c...

European Investment Bank celebrates 25 years in Romania with 13 billion Euro for economic and financial support

The European Investment Bank (EIB) has approved more than 13 billion Euro worth of financing and advisory services for Romania since it started its operations in the countr...