Enel €400 million acquisition of 13.6% of E-Distributie Muntenia and Enel Energie Muntenia

Overview:

• Enel, through subsidiary Enel Investment Holding (EIH) has acquired 13.6% of both E-Distributie Muntenia (EDM) and Enel Energie Muntenia (EEM) from SAPE for €400 million.
• EDM and EEM are Romanian electricity distribution companies.
• SAPE is a Romanian state-owned holding company.
• EIH now holds around 78% of the share capital in both EDM and EEM.
• Enel acquired a 64.4.% stake in Electrica Muntenia Sud (EMS) in 2008 following a privatisation process. Later in 2008 the electricity distribution and sales operations of EMS were un-bundled and transferred to EDM and EEM.
• In 2009 Enel transferred its acquired stakes to EIH.
• The deal follows an arbitration proceeding over the put option exercised in 2012, with SAPE originally asking for €520 million as part of the deal.

Sam Duke - Editor