Enel reportedly to sell minority stakes in Romanian subsidiaries

Italian group Enel plans to sell only minority stakes of its Romanian subsidiaries, local unofficial sources in Romania quoted by Economica.net explained, after Money.it informed that the Italian group is in talks with three funds to sell its businesses in Romania.

Despite the fact that the sale of the assets at present represents only a hypothesis, the Fond or Macquarie, the Singapore GIC and the Kuwait Wren House infrastructure fund would have already been interested, Money.it reported.

Romanian assets in 2018 recorded revenues of around EUR 1.2 billion and an operational profit (EBITDA) of EUR 230 million. The value of the assets subject to negotiations would be EUR 1 billion. This value is in line with the scenario of only minority stakes being for sale.

The local sources explained that Enel came up with the idea of selling minority stakes in its Romanian companies after the restitution fund Fondul Proprietatea put up for sale its minority stakes in Enel’s subsidiaries. The interested investors would have liked larger stakes -- yet not majority stakes. Thus, Enel would retain the majority stakes and keep managing the companies.

Enel had previously considered in 2014 selling its Romanian assets, but gave up the idea in 2015 explaining that the assets are core assets under the revised business strategy.

(Photo source: Enel Romania)