Romania's state energy department said on Wednesday the International Court of Arbitration in Paris has accepted the country'scase against Italy's Enelover breaches in the privatisation contract of power distributor Electrica Muntenia Sud.
Romania wants to exercise a put option included in the privatisation contract, asking Enel to pay 521.6 million euro ($669million) for a 13.57% stake in the power distributor, theenergy department said in a statement.
Romania wrapped up the sale of a 64.4% stake in Electrica Muntenia Sud toEnel for 820 million euro in 2008.
According to the privatization contract signed in 2007, state-controlled power distributor and supplier Electrica hasthe right to sell and Enel - the obligation to buy - part of, or the entire stake it still ownsin former Electrica Muntenia Sud, of23.57%. A stake of 10% in Electrica will be distributed among the company's employees, so Enel has the obligation to buy only the remaining 13.57%.
The decision to file legal action against Enel was taken after amicable talks between the two parties failed.
In July, Enel saidit was starting a process to divest its distribution and sales assets in Romania as part of a widersale programme being implemented to strengthen the group’s financial structure.
Source: SeeNews