Italy’s Enel SpA (BIT:ENEL) has extended its existing exclusivity agreement with PPC SA (ATH:PPC) to give the Greek power utility an extra month to negotiate the acquisition of Enel's Romanian operations.
The exclusivity period for negotiations between the parties and during which Enel Romania’s books will remain open has been extended until February 28, 2023, PPC said in a bourse filing on Monday. The original agreement covered a period between December 15, 2022, and January 31, 2023.
Once due diligence is completed, PPC’s board of directors will decide whether to make a binding proposal to the Italian peer.
In Romania, Enel serves 2.8 million customers through its supply and distribution network. The group’s local green energy arm, Enel Green Power Romania, owns 12 wind and solar parks of 534 MW in total.
Enel’s intention to offload its operations in Romania is part of the group’s plan to tighten spending in 2023-2025 by shedding assets worth EUR 21 billion (USD 22.65bn) as it works to bring down net debt and focus on six core markets.
According to local media reports, the energy major is also currently in the process of selling its Greek subsidiary.
(EUR 1.0 = USD 1.079)
Choose your newsletter by Renewables Now. Join for free!