PPC reportedly expects to buy cheap Enel's Romanian assets

Public Electricity Company of Greece (PPC) seeks to buy Enel's Romanian business at a lower price than the multiples seen on the local market, according to Greek media quoted by local Profit.ro.

Namely, the Greek public company seeks to bid a price that is half the per-subscriber price seen on the market recently when it comes to the electricity distribution business and at a price per EBITDA that is 20% lower when it comes to the renewable energy division.

The offer to buy Enel's Romanian business, totalling around three million customers, results in a price of less than EUR 90 per customer, which is less than half the cost corresponding to recent purchases completed on the Greek market, reports the Greek press. However, the deal used as a comparison is much smaller: a portfolio of 200,000 customers, taken over by Mytilineos from Watt+Volt.

The price envisaged for Enel's distribution network is also negotiated at a level well below the cost of the corresponding acquisitions recently completed in Greece.

The price paid by the Australian group Macquarie for a 49% stake in the Greek distribution operator Deddie/Hedno is 20% above the level discussed between PPC and Enel for the Enel Romania networks, the quoted source says.

The same is true for the renewable energy division of Enel. The EBITDA multiple would be 10 in the deal involving Enel's green energy division, compared to 12 for a similar deal in Greece.

PPC will reportedly begin negotiations with Enel in February to buy the latter's business in Romania. The talks are expected to take no more than ten days.

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