Italian power groupEnel said on Thursday it has put on hold the planned sale of assets in Romania after reaching its target for debt reduction at the end of 2014.
"Enel confirms that the disposal process for its assets in Romania has been temporarily suspended," Enel's spokesman told See News.
The sale of Enel Romania was part of a broader asset disposal programme aimed at cashing in up to 4 billion euro ($4.6 billion)by the end of 2014 for consolidated debt reduction.
Following the successful execution of several initiatives during 2014, this target was achieved.The company's board will therefore decide on plans for any further progress of the programme in the context of the new strategic plan, and a further update will be given in March, the spokesman added.
In July 2014, Enel saidit was starting a process to divest its distribution and sales companies in Romania as part of a wider divestment programme to strengthen the group’s financial structure.The sale would involve a64.4% stake in Enel Distributie Munteniaand Enel Energie Muntenia, a51% stake in Enel Distributie Banat, Enel Distributie Dobrogeaand Enel Energie, as well as 100% of services company Enel Romania.
These companies manage a power grid of about 91,000 kilometres in the regions in which they operate, distributing about 14 terrawatt hours (TWh) of electricity a year,with a domestic market share of 34%,and selling nearly 9.0 TWh a year to about 2.6 million customers.In 2013, they had consolidatedrevenues of 1.118 billion euro and earnings before interests, taxes, depreciation and amortisationof 289 million euro.