During the exclusivity period, until the end of January 2023, the parties will negotiate the transaction documentation and PPC will carry out appropriate due diligence on the targeted assets, PPC said in a press release.
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Upon completion of the due diligence, PPC’s board of directors will determine whether PPC will submit a binding offer to Enel.
In November, Italy's Enel announced that it plans to sell its Romanian assets in 2023 and focus its activities in Europe around Italy and Spain. The decision is part of the group's long-term streamlining strategy, it said at the time in its strategic plan for the 2023-2025 period.
Shortly after, Greek economic portal Banking News reported that PPC, Canada's Brookfield Asset Management and UK-based Amber Infrastructure are interested in buying the Romanian assets valued at roughly 1.9 billion euro ($2.02 billion).
However, at the beginning of November, PPC denied media reports about a deal for the Romanian unit of Enel, but said that it is evaluating potential acquisitions in Romania and Bulgaria.
PPC was founded by the Greek government in 1950 and is listed at the Athens Stock Exchange since 2001. Its total installed capacity in Greece is 10,4 GW, with thermal and hydroelectric power plants as well as renewable energy sources installations. It is the owner of the distribution network with a regulated asset base of approximately 3 billion euro, which is operated by its subsidiary, HEDNO, according to information posted on its website.
In Romania, Enel operates on the supply segment through Enel Energie si Enel Energie Muntenia, on the distribution segment through E-Distributie Banat, E-Distributie Dobrogea and E-Distributie Muntenia and on the production segment, through Enel Green Power Romania.
The group serves about three million customers and employs 3,100 in locally.
In August, the Italian group lent 375 million euro to its Romanian units Enel Energie and Enel Energie Muntenia to cover their financing needs in the context of rising electricity prices and state subsidies scheme for final consumers, Fondul Proprietatea, a shareholder in the two units, said at the time.
($=0.9386 euro)
Enel Energie SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies
(SeeNews, December 15, 2022)