Enel Subsidiary Sells Distribution Networks to A2A Electricity for $1.3 Billion
By David Sachs
Enel subsidiary E-distribuzione agreed to sell some of its distribution activities to Italian utility A2A for about 1.2 billion euros ($1.3 billion).
The Italian energy producer said Saturday that E-distribuzione will sell 90% of the capital in a newly-created company, NewCo, that will boost A2A's electricity distribution in Milan and Brescia. The deal feeds Enel's financial sustainability goals, it said.
Under the agreement, E-distribuzione will retain a 10% stake in NewCo to support startup activities, with an option for A2A to buy the stake at a later date, Enel said.
The transaction is expected to close by the end of the year.
The companies also signed a non-binding agreement to explore other acquisitions of electricity-delivery activities held by A2A outside of Milan and Brescia, Enel said.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
March 11, 2024 02:49 ET (06:49 GMT)
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