Greece’s PPC: The deal with Enel was announced

A binding agreement with Enel S.p.A. (Enel) for the acquisition of all the holdings held by Enel and its subsidiaries in Romania for a total of approximately 1,260 million euros was entered into by the Public Power Company ("D.E.H."), as OT already noted on Wednesday.

(The price was set based on the total value of the business which amounts to approximately 1,900 million).

As stated in today's announcement the total consideration is subject to regular adjustments and includes an earnings mechanism in the context of a possible additional payment based on a future increase in the value of the trading activities.

Completion of the acquisition is expected to take place by the third quarter of 2023 and will be subject to certain conditions (conditions precedent) customary in such transactions, including among others the approval of the competent competition authorities.

PPC states that the said acquisition is a milestone for its development strategy, with the acquisition of a significant portfolio of renewable energy sources (both projects in operation and projects in the process of maturing), and distribution and marketing activities that occupy a leading position in the market. The acquisition also constitutes the first major expansion of D.E.H. abroad.

Financing

The company intends to finance the acquisition through a combination of debt and equity on its balance sheet, of which €800 million will come from already secured debt financing available in the form of a €485 million 5-year loan from Greek banks, as well as bridge loan (bridge facility) of 315 million euros from international banks.

Citigroup Global Markets Europe AG, Goldman Sachs Bank Europe SE and HSBC Continental Europe are acting as financial advisors and...