The Board of Directors of Enel approved the go-ahead to the placement on the market of a portion of the share capital of Endesa by the subsidiary Enel Energy Europe (EEE), which currently owns 92,06% of the Spanish energy company in its portfolio.
In a first phase the will be sold 17% of Endesa - reports a note from Enel -, but subsequently the operation may reach 22% of the capital, including the greenshoe option, which provides for the Joint Global Coordinators the possibility of purchasing a maximum of 15% of the shares put on the market, in order to stabilize the Endesa share prices. The public offer, subject to the approval of the prospectus by the Spanish authority CNMV, will begin the 7 November.
The placement is part of the already announced restructuring of Enel's activities in the Iberian Peninsula, which saw Endesa produce a new industrial plan focused on the development of current business platforms, innovation of the energy model and strengthening the competitiveness of its activities in Spain and Portugal. In particular, through the transaction announced today, Enel intends to enhance the stake held by EEE in the Spanish subsidiary and overcome the current situation of limited liquidity of the Endesa share.
“I am delighted that Enel's board of directors has given the green light to this initiative of great strategic importance for the Group – commented the CEO of Enel, Francesco Starace –. This is a fundamental step in the operation announced to the market last summer, which has the aim of creating new value in the Group and increasing our focus on the new energy market that has emerged in the Iberian Peninsula".
It is also envisaged that, as part of the offer, EEE and Endesa undertake, respectively, not to sell and not to issue Endesa shares for a period of 180 days following the payment date. The offer aimed at institutional investors is managed by a consortium of banks coordinated and directed by Banco Santander, BBVA, Credit Suisse and JP Morgan as Joint Global Coordinators, while Goldman Sachs Internationaln Stanley and UBS Limited act as Joint Bookrunners. BBVA and Santander also coordinate the consortium in charge of the offer aimed at retail investors in Spain. Mediobanca acts as financial advisor to Enel and EEE.
In light of the new operation, the board of directors of Endesa yesterday made some changes to its composition, co-opting Alberto De Paoli and Helena Revoredo Delvecchio to replace the outgoing Luigi Ferraris and Salvador Montejo Velilla.
Following the release of the news, Enel shares gained 0,93% on the Milan Stock Exchange this morning to 3,888 euros.
