Goldman funds acquire Endesa's Spanish gas assets for $1.1 bn
29 Sep 2010
Italian energy giant Enel SpA's Spanish subsidiary Endesa SA has agreed to sell 80-per cent stake in its arm Endesa Gas SA to two infrastructure funds operated by global investment and securities major Goldman Sachs for approximately €800 million ($1.1 billion), Enel said in a statement.
The transaction is part of Enel's business strategy for 2010-2014 to optimise the Group's portfolio and reduce its net debt.
Endesa Gas's assets include around 3,800 km of distribution and 600 km of transportation networks, 355,000 delivery points, with annual consumption of 7,500 GWh.
The total gas assets are valued at approximately €1 billion ($1.35 billion) and the transaction will result in reducing Endesa's net debt by about €800 million. It is also expected that the deal will have a positive impact of around €450 million on Endesa's pre-tax profit.
Enel CEO and general manager Fulvio Conti said, "Today's transaction represents another step forward in the implementation of our plan to optimise the Group portfolio and strengthen its capital structure.''
''Together with disposals already under way, and on-going initiatives to improve operational cash flow, this operation enables us to confirm the objective for reducing the Group's net financial debt in line with the plan announced to the markets," Conti further stated.
