Public Power Corporation PPC on Thursday announced it has reached a deal to increase its equity stake in electricity power distribution and supply companies in Romania, following an agreement reached on March 9 to acquire all of Enel’s activities in the country.
The new deal includes Fondul Proprietatea’s equity stakes in 3 electricity distribution companies (e-distributie Mountenia (EDM), e-distributie Banat (EDB) και e-distributie Dobrogea (EDD) and two supply copmanies Enel Energie Muntenia (EEM) και Enel Energie (EE). The deal envisages the purchase of all minority stakes in these five companies (12% in EDM, 24.1% in EDB, 24.1% in EDD, 12% in EEM and 12% in EE) for an appreciation of around 131 million euros. Completion of the deal is subject, among others, to the completion of the transaction between PPC and Enel in Romania.
PPC acquires Fondul’s equity stakes with a discount of more than 26% raising its expected return (IRR) in Romania, the Greek electricity utility said in an announcement.
