Enel has acquired 21% of the newco which will acquire 100% of Ufinet International, the leading wholesale operator of fiber optic networks in Latin America. The operation was carried out through the subsidiary Enel X International and involves an investment of 150 million euros. The sale is a holding controlled by Sixth Cinven Fund, a fund managed by the international private equity firm Cinven, which in turn will own about 79% of the newco.
Ufinet, Enel explains in a note, represents a growth platform in Latin America in the ultra-broadband sector, in line with the Italian group's 2018-2020 Strategic Plan.
Under the agreement, the note specifies, Enel X International will have a call option to acquire the stake in Sixth Cinven Fund. The option will be exercisable between 31 December 2020 and 31 December 2021, against an additional investment of between 1,32 and 2,1 billion euros and defined on the basis of certain performance indicators.
Enel X International and Sixth Cinven Fund will have joint control of Ufinet International, each exercising 50% of the voting rights in the newco's shareholders' meeting. The closing of the transaction, which the Enel Group will finance through its own resources, is expected in July 2018.
