Italian group Enel acquired stakes of 13.6% in the local companies E-Distributie Muntenia (EDM) and Enel Energie Muntenia (EEM) from SAPE, the company that manages the Romanian state’s portfolio in the energy sector, for a total amount of EUR 401 million.
The amount was established following an international dispute and the deal was concluded via the subsidiary Enel Investment Holding BV (EIH), which is 100% owned by the Italian group.
Following this deal, EIH increased its stake in EDM and EEM to about 78%, from 64.4% previously.
In mid-February, the Paris Court of Arbitration decided that the Italian energy group Enel has to pay EUR 401 million to the Romanian state for a 13.57% stake in the former electricity distribution and supply company Electrica Muntenia Sud, privatized in 2008.
The Romanian state started the arbitration procedures against Enel in 2014 invoking a breach of the privatization contract, which bound the Italian group to buy the state’s stake in the electricity distribution business when asked to. In 2012, the Romanian Government asked Enel to pay EUR 521 million for the stake, invoking the clauses of a Put Option included in the privatization contract, but the Italian group was willing to pay less than EUR 300 million. The two sides went to the arbitration court, which ruled that Enel should pay EUR 401 million.
(romania-insider.com)
