The deal will give PPC some 500MW in operational wind farms in the country and a pipeline of wind projects totalling 2.3GW - along with solar PV, distribution and other assets
For PPC, the transaction represents the first major investment outside of its home market. The firm said the acquisition is in line with its strategic plan, which foresees international expansion in southeast Europe.
“This is a unique chance to acquire an integrated utility platform at an attractive valuation, setting PPC on the path to becoming a leading clean utility player in southeast Europe,” said Giorgios Stassis, chairman and CEO of PPC.
The deal is also consistent with Enel’s strategic plan, which indicated that the utility would exit from Romania, along with Peru and Argentina, as part of disposal plans expected to yield a total of €21 billion to help bring down Enel’s debt.
Enel said the Romania transaction should allow it to cut debt by about €1.7 billion. It will also have a cumulative negative impact on reported net profit of €1.4 billion in 2022-2023 although it will bear no impact on ordinary economic results.
According to a PPC presentation on the deal, Enel owns eight operating wind farms in Romania with combined capacity of 499MW as well as four solar photovoltaic plants with a total 36MW in capacity. Its pipeline is made up of seven wind projects with 2.3GW and 11 solar PV plants with 3.1GW capacity.
The transaction also encompasses Enel’s other assets in Romania, including controlling stakes in three Romanian distribution companies and two electricity supply companies.
The deal is expected to close by the third quarter of 2023 and is subject to regulatory approval and other customary conditions.