Enel is selling the 17% of Endesa and the Stock Exchange approves. It was the managing director Francesco Starace who presented the operation launched yesterday by the Board of Directors in the Senate and in Piazza Affari the group's shares rose by1,97% to 3,9 euros, when the Ftse Mib gains 1,94%. The one illustrated in the Industry commission by Starace, flanked by Carlo Tamburi, head of Country Italy, is an increasingly international Enel.
The launch of the placement on the market of a share of the share capital of Endesa (which loses 3,64% on the Madrid Stock Exchange) is the next step after the reorganization of Latam activities of Endesa launched at the end of October. Indeed, with the approval of the Spanish shareholders, Enel Energy Europe (EEE) became the owner of 60,62% of Enersis, the Chilean leader of the activities in South America. In this way Endesa, focused on the Spanish and Portuguese markets, is ready to face the test of the market which will be offered the purchase of 17% of the capital from Friday, with the possibility of increasing the stake to 22%, including in any case the 'option green shoe. The option envisages that the Joint Global coordinators may purchase up to a maximum of 15% of the shares offered, to stabilize Endesa share prices. Enel Energy Europe (EEE), which currently owns 92,06% of the capital of the Spanish subsidiary, is offering for sale and there is also a 180-day lock-up from the date of payment of the shares.
The collection estimated by Intermonte analysts who issued a note this morning is between “between 2,6 and 3,3 billion euros, assuming a 5% discount compared to current prices”. The Opv is addressed in part to the retail investors in Spain with an assumed share of 15% (to which to add any part of the green shoe) and in part to the Spanish and international institutional investors.
"This is a fundamental step in the operation announced to the market last summer, which aims to create new value in the group and increase our focus on the new energy market that has emerged in the Iberian Peninsula", stated Starace who counts in this way to overcome the situation of limited liquidity of the Endesa share. In Latin America “it was crucial to get a handle on this situation; you will see that in the coming months we will be doing mergers and mergers of companies'”, he continued. In any case, the Endesa deal will not delay the planned sales in Slovakia and Romania. “These are two separate teams that continue to work. Offers have arrived for Romania – he recalled – they will soon arrive for Slovakia ». Also confirmed dividend policy of the group: “We said last March that a payout of 40% is expected for the whole of 2015 and that it could become 50% once the debt crunch is overcome. There are no reasons to change our vision."
Looking further, Starace pointed out that “the Mediterranean is a strategic area” for Enel which has a series of tenders underway. Morocco is in pole position with the tender “for 850 MW of wind power for which Enel, with Enel Green Power, is prequalified with three other groups. It's imminent, it will happen in the coming months”. Soon after will come "Egypt which is taking over the dossiers of blocked tenders in which we were prequalified". In Africa, added Starace, in addition to South Africa "where we are already present and by the end of November we await the results of a second tender", the group is moving to Mozambique, Algeria and Kenya.
However, there is no news on the side China. After the entry into the Enel capital of the Chinese central bank (People Bank of China, second shareholder of the electricity group with 2,071%), the agreement signed in October with Bank of China "it's pure finance" the CEO wanted to clarify, explaining that "it is a general agreement with which the Chinese bank has made competitive financial instruments available to Enel, short and long-term loans to manage debt and also to make new operations. These are loans at subsidized rates, at a lower rate than that offered by the market and are not linked to Chinese products".
As for the assets that e.on he put up for sale, "we only made an offer for customers not for networks, whose offer expired two days ago."
L'Italy arrives at the end but not because it is less important than because today the focus was concentrated on the activities in Spain and Portugal with the announcement of Endesa's Public Offer. The issue of reducing thermoelectric production and the plan remains closure of 23 plants overall announced in mid-October. “Today – concluded Starace – I see three central which are no longer conceivable as production sites. Genoa, Bari and Livorno, central to the center of the city, will be destined for different uses. Then there is a group of sites for which we will launch an ideas competition to try to figure out what to do with them”. According to the communications released by Enel in mid-October, there are 9 plants (Trino, Porto Marghera, Alessandria, Campomarino, Carpi, Camerata Picena, Bari, Giugliano and Pietrafitta) for which the procedures for definitive cessation of operation have already been initiated , but none of the 700 employees involved will lose their jobs.
