Enel rearrange activities into Latin America and on the peninsula Iberian. The group's board of directors has given the go-ahead for Enel Energy Europe (a company incorporated under Spanish law whose capital is wholly owned by Enel) to present a binding proposal for the purchase of the 60,62% stake held directly and indirectly by Endesa, controlled by Enel itself with a stake of 92% of the capital, in the Chilean capital Enersis, leader of the activities in Latin America.
Enel Energy Europe has put more than 8,25 billion euros on the plate, a sum that will have to be evaluated by the Endesa board of directors scheduled for September 17th. In the event of a green light, the board will then have to ask for the approval of the Spanish company's shareholders' meeting.
Enel Energy Europe will also propose the distribution by Endesa of an extraordinary cash dividend equal to the consideration received by Endesa for the Enersis transaction.
Secondo ubs, the project will go through: Enel has in fact put on the plate a value that the shares haven't seen since mid-2011, with a 17% premium compared to the average share price of the last six months. “We believe that the operation has been approved by the Endesa shareholders' meeting”, commented the analysts, underlining that the project will also create value for Enel.
Investment bank experts imagine that the project announced by the company is only the first step in a broader plan that will involve the increase in the free float of the subsidiary Endesa. At the same time, the company should divest in Eastern Europe and use the resources it will obtain to invest in South American renewable energies.
In this way the group should start to grow more than its competitors, therefore Ubs recommends buying the shares, indicating a price target of 5,15 euros. Positive judgment on the operation also by Intermonte, which issued a 'buy' and target price valuation at 5,2 euros.
At the beginning of the afternoon, Enel shares were up 0,7%, with shares trading at 4,23 euros.
