ZF English

Enel pays 820m euros to take over sale of electricity in Bucharest

06.06.2006, 00:00 9

The Italians submitted a financial bid worth a total of 820.09 million euros for 67.5% in the electricity distributor of the Capital, which will be the value of the privatisation contract. The deal means that the state will collect over three times more from Enel than it collected from the total sale of the first four electricity distributors. The state will collect 394.8 million euros from the sale of Electrica Muntenia Sud, excluding any possible price adjustments to be made later. The price offered by Enel per share is 41.28 euros, according to the Economy and Trade Ministry, that is 15 times higher than the nominal value of a share. The Italians'' bid evaluates Electrica Muntenia Sud at 789.7 million euros. The Italians at Enel were the first to enter the Romanian electrical power market as strategic investors, signing contracts for the acquisition of 51% in electricity distributors Electrica Banat and Electrica Dobrogea in the summer of 2004. ZF

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