Great maneuvers for Italian energy groups: on the one hand Enel divests its electricity generation activities in Russia en bloc; on the other, Erg opens its capital to an Australian fund.
Enel leaves Russia and collects 137 million
Let's start with the company led by Francesco Starace, who announced Thursday that he has sold the entire stake held in Enel Russia, equal to 56,43% of the share capital, for a total consideration equal to about 137 million euro which will be paid at closing. In detail, two agreements were signed: one with PJSC Lukoil and one with the Closed Combined Mutual Investment Fund "Gazprombank-Frezia".
With this operation, a note reads, Enel concludes the sale of electricity generation assets in Russia (started in 2019 with the first disposal of coal-fired assets), which include approximately 5,6 GW of conventional capacity and approximately 300 MW of wind capacity in various stages of development. The divestment is in line with the group's strategic objective of concentrating its activities primarily in countries where an integrated position along the value chain can drive growth and improve value creation by leveraging the opportunities offered by the energy transition.
Enel, the company reports, "has in any case already adopted or promoted certain measures which have led to the cessation of management and coordination with respect to Enel Russia".
At an accounting level, the effect of the loss of control over Enel Russia should produce a positive effect on net financial debt consolidated income of the Enel group for approximately 550 million euros e a negative impact on reported group net income of approximately 1,3 billion euros, mainly due to the release of the exchange translation reserve, for approximately 1,1 billion euros at May 31, 2022. This accounting effect will not have no impact on ordinary economic results.
The completion of the transaction, expected by the end of the third quarter of this year, is subject to the fulfillment of certain conditions precedent, including the release of the authorization by the Russian government Commission for monitoring foreign investments and by the Federal Antimonopoly Service Russian.
Erg: Australians pay a billion for 22%
As for Getting very, the Australian fund Ifm will enter with 35% in a new holding with the Garrone family, a holding company which it will in turn hold about 62,5% Erg. Ifm's investment exceeds one billion euros and provides an option for more 500 million of capital to support the growth of Erg, according to the strategic goals announced by the company in March.
Once this operation is completed, San Quirico, holding company of the Garrone-Mondini family, will keep control Erg and therefore no takeover bid or delisting of the company is envisaged. The partnership "will allow the company to unlock further growth potential based on the ambitious decarbonization goals set by governments and institutions globally," the statement explains.
San Quirico and IFM “are strongly aligned with the strategic objectives outlined in Erg's business plan presented in March 2022 and will support Erg's CEO and his wider management team to ensure the achievement of these objectives”.
“Ifm will bring a broad international footprint that goes well beyond Europe as well as its strong long-term financial support, to enable Erg to pursue faster, broader and more diversified growth,” comments Edoardo Garrone, president of San Quirico and Erg.
