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Minister Nicolescu: Enel must further fully observe contractual commitments
All the commitments pledged by Italy's Enel under privatization contracts must be further fully observed, Minister-delegate for Energy Razvan Nicolescu said in a statement.
Italian energy group Enel announced that its Board of Directors had agreed on a plan to sell its power generation assets in Slovakia and its distribution and sales assets in Romania.
'Plans of the new management of Enel Group to reduce their presence abroad is no surprise for us. As far as the Romanian state is concerned, we want all commitments pledged by Enel under the privatization contracts to be further fully observed. The Energy Department takes all action to this effect,' said Nicolescu.
Between 2005 - 2006 Enel acquired in Romania three power distribution and supply companies, specifically former subsidiaries Electrica Muntenia Sud (including Bucharest), Electrica Banat and Electrica Dobrogea.
The company also ranks third on the renewable energy market, having several wind farms in its Romanian portfolio.
The announced sale of the holdings in Slovakia and Romania are part of a broader 6 billion euro program of asset sales begun in 2013 and aimed at reducing Enel's debt. The program has generated 1.6 billion euros so far.
The sale of assets in Slovakia and Romania, along with other non-strategic assets are expected to raise more than 4.4 billion euros / 6 billion US dollars, the company announced in a statement.
The disposals will involve a 66 percent stake in Slovenske Elektrarne in Slovakia; 64.4 percent in Enel Distributie Muntenia and Enel Energie Muntenia; 51 percent in Enel Distributie Banat, Enel Distributie Dobrogea and Enel Energie; and all of Enel Romania Ltd.
Enel specified that last year these companies had revenues of 1.1 billion euros and EBITDA of 289 million euros. They distributed 14 TWh of electricity and had sales of 9 TWh in 2013. Enel has 2.4 million residential customers in Romania, holding a market share of 20 percent, while another 200,000 are businesses, accounting for a market share of 38 percent.
In 2013 the company had revenues of 1.118 billion euros and generated an operational profit of 289 million euros.
Italian group Enel said it had officially notified its subsidiaries in Slovakia and Romania, as well as the minor shareholders (companies or entities controlled by the state) about the onset of the sales process and that its designated financial advisors are BNP Paribas and Deutsche Bank for the sale of assets in Slovakia, and Citigroup and UniCredit for the process in Romania, respectively.
The company also mentions that it will provide the Governments timely relevant information.