Greek public power corporation PPC sealed a binding deal to acquire assets held by Italian utility group Enel in Romania for around 1.26 billion euros, equivalent to an enterprise value of around 1.9 billion euros.
The total consideration will be subject to periodic adjustments as well as an earning mechanism for potential additional payments based on the future value of the retail business.
The acquisition is expected to be completed by the third quarter of 2023 and will be subject to certain conditions (conditions precedent) customary in such transactions, including, but not limited to, the approval of the relevant competition authorities.
PPC plans to finance the acquisition through a combination of debt and equity from its balance sheet, of which EUR 800 mln will come from already secured debt, with EUR 485 mln available as a 5-year loan from Greek banks. A bridge loan of EUR 315 million from international banks (bridge facility), Economedia.ro Reported.
Fitch Ratings Just confirmed With PPC’s long-term issuer default rating and senior unsecured rating at BB-/stable, the potential acquisition of Enel Romania “reflects its resilient cash flow performance.”
PPC’s IDR includes a one-notch upgrade reflecting overall moderate links to the Greek state (BB+/Stable), with solid evidence of tangible support and moderate systemic relevance in default. The rating agency sees those links weakening over the medium term as PPCs build a record of financial self-sustainability and the state reduces its grip.
(Photo Source: Enel Romania)