(ADPnews) – Oct 14, 2010 – Enel (BIT:ENEL) will not cede more than 33% in Enel Green Power, chairman Piero Gnudi said answering journalists' questions on the green unit's stake that the group intends to list.
The initial public offering (IPO) of Enel Green Power will take place within the pre-set terms, Gnudi added.
Enel, which owns Spanish utility Endesa (MCE:ELE), plans to list Enel Green Power on both the Milan and Madrid stock markets and targets raising EUR 3 billion (USD 4.226bn) in what would turn out to be Europe's biggest IPO so far this year and the biggest IPO in the renewables sector since 2007.
Rumour has it that Enel Green Power would pay dividends with a payout ratio of at least 30%, which would be in the sector's top range, as it would seek to attract among the potential institutional investors also long-term investors, such as pension and mutual funds.
Enel Green Power has a debt of some EUR 3 billion and has been evaluated at up to EUR 12 billion in the pre-marketing stage.
Enel chief executive, Fulvio Conti, said the price of the green unit would be set at 10 to 12 times its earnings before interest, tax, depreciation and amortisation (EBITDA), adding that Enel Green Power had planned EUR-5-billion investment until 2014, mostly in wind energy.
The IPO is expected to help Enel cut its net debt to around EUR 45 billion by year-end from the almost EUR 51 billion booked at end-2009.
(EUR 1.0 = USD 1.409)
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