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Enel Focuses with Euro 1.4bn property disposal

Published at: Mar 21, 2004
source: http://www.enel.it/
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Enel has accepted a ?1.4bn ($1.7bn) offer from a Deutsche Bank-led consortium to buy 887 properties as the Italian utility refocuses o­n its core electricity and gas business. The deal will provide Enel with a capital gain of ?200m and by renegotiating rents for properties Enel still occupies, the group also expects to see a net profit gain of ?20m for 2004 after the transaction is closed.
That benefit is expected to improve over time as Enel makes better use of the space it still occupies. The Italian group said its board considered the offer from the Deutsche Bank Real Estate Management and CDC Ixis consortium to be "in line with Enel's expectations". The consortium now has a period of exclusivity until April 30 in which to complete the contract. It will then be submitted to the anti-trust authority for authorisation.Ahead of the sale, Enel will transfer a further 335 properties, which currently form part of the New Real holding company being sold, to Dalmazia Trieste, an Enel company.The property sale comes just a few months after the Italian government took a step towards cutting its vast public debt by selling a ?2.2bn stake in Enel. It still holds a controlling 61 per cent stake in the former state monopoly, however.Paolo Scaroni, Enel chief executive, said soon after he took charge of Enel two years ago that he would refocus the group o­n its core gas and electricity operations. However, even in this part of the business it has made a number of disposals over the past few years.In November Enel agreed to sell a large electricity distribution network in northern Italy to ASM Brescia, a regional utility, for ?166.5m. That deal, part of a gradual liberalisation of the Italian electricity sector, followed the sale of a network in Rome in April 2001 ?568m, and another in Milan in October 2002 for ?423.5m.
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