ENEL Acquires 25.01% Stake in Endesa from Acciona

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Researched by Industrial Info Resources (Sugar Land, Texas)--On February 20, Fulvio Conti, CEO of the major Italian utilitiy Enel SpA (BIT:ENEL) (Rome), announced Enel's acquisition of 25.01% of the Spanish company Endesa SA (MCE:ELE) (Madrid) from Acciona Energia (Sarriguren, Spain), part of the Acciona SA (MCE:ANA) (Madrid) holding company. After this acquisition, ENEL will own 92.06% of Endesa.

The operation will generate a total cost of $14.9 billion for Enel . This amount is divided into $14.78 billion, corresponding to the acquisition and the payment of dividends due to third-party shareholders and $120 million for Endesa's additional debt consolidation. The total additional debt consolidation amounts to $3.82 billion, but $3.7 billion will be offset by the transfer of 2,105 megawatts (MW) of installed capacity to Acciona: 1,423 MW from renewable sources and 682 MW from conventional hydropower plants. The operation will be financed by a syndicated loan of $10.2 billion obtained from a pool of 12 banks: $7 billion with a maturity of five years and the remaining $3.2 billion with a maturity of seven years.

With this acquisition Enel becomes the second-largest power company in Europe, having a total installed capacity of 94,300 MW in 22 European countries. Enel is the leading operator in the Italian, Spanish and Czech energy markets and is a major player in Russia and Bulgaria.

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