Enel SpA's (ENEL.MI) unit Endesa SA (ELE.MC) said Monday it has agreed to sell 80% of a bundle of natural gas distribution assets for EUR800 million to two infrastructure funds managed by Goldman Sachs Group Inc. (GS).
Enel SpA's (ENEL.MI) unit Endesa SA (ELE.MC) said Monday it has agreed
to sell 80% of a bundle of natural gas distribution assets for EUR800 million
to two infrastructure funds managed by Goldman Sachs Group Inc. (GS).
The assets sold by Madrid-based Endesa include a distribution network covering
3,800 kilometers, a transport network of 600 kilometers and 355,000 access
points, the Spanish power utility said.
As part of the agreement, Endesa has an option to buy the stake back five or
seven years after the transaction closes.
The transaction will boost Endesa's pretax profit by EUR450 million, and cut
debt by about EU800 million, it said.
The asset sale is part of Endesa parent Enel's bid to reduce net debt. It
became
Europe
's most indebted utility after taking control of
the Spanish utility. It had net debt of EUR53.89 billion at June 30 and plans
to sell assets worth EUR7 billion this year.
"Together with disposals already under way... this operation enables us to
confirm the objective for reducing the group's net financial debt in line with
the plan announced to the markets," said Enel Chief Executive Officer
Fulvio Conti in a statement Monday.
The Rome-based utility expects to sell a minority stake worth at least EUR3
billion in its renewable energy unit, Enel Green Power SpA, in October as part
of its pledge to investors to slash its debt pile.
As part of the latest asset sale, Endesa will pay Gas Natural SDG SA (GAS.MC) a
minimum EUR70 million for a 35% stake in Gas Aragon, one of the assets being
sold, that it will pass on to the Goldman funds.
At 1255 GMT, Endesa's shares were down EUR0.50, or 2.5% at EUR19.67. Analysts
said the sale price was in line with expectations. Portuguese broker BPI said
it bodes well for other sales of regulated energy assets at a time when recent
regulatory uncertainties had threatened some deals.
"This deal confirms the appetite for infrastructure funds to bet on
regulated businesses in
Iberia
,"
BPI said.
Both Gas Natural and
Portugal
's
Galp Energia SGPS (GALP.LB) are in the process of selling assets.
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