“In light also of the strategic priorities of the new industrial plan that will be presented to the financial community on March 19th, the Board agreed to suspend the disposal of distribution and retail assets in Romania and to continue disposals of generation assets in Slovakia”, Enel said in a statement.
Enel Romania said last week that the company temporarily suspended the sale of its Romanian assets, as it already managed to reduce its debts following the successful completion of several transactions included in the sale program last year.
In 2014, Enel announced it plans to get over EUR4 billion from the sale of its assets in Romania and Slovakia.
In Romania, Enel controls one third of the energy distribution market, as it owns a 64.4% stake in Enel Distributie Muntenia SA and Enel Energie Muntenia SA, 51% in Enel Distributie Banat SA, Enel Distributie Dobrogea SA and Enel Energie SA, as well as 100% in the services company Enel Romania Srl (held by Enel through Enel Investment Holding BV).
Sources in energy sector stated last year that Enel wanted to get EUR1.7 billion-EUR1.8 billion for the three Romanian units put up for sale, compared with the state’s evaluation of maximum EUR1.3 billion, otherwise it might drop the sale and consider asset sale in other countries.
Enel entered the Romanian market in 2005, when it bought Electrica Banat and Electrica Dobrogea for EUR127.4 million. In 2008, Enel paid the Romanian state EUR394.8 million for a 50% stake in Electrica Muntenia Sud. It later increased its stake in Muntenia Sud to 64.4% and paid another EUR38 million to the Romanian authorities.