Enel Is in Talks to Sell Endesa Gas-Distribution Network to Goldman Fund
Enel SpA is in talks with Goldman Sachs Group Inc.’s infrastructure fund about possibly selling Endesa SA’s gas distribution network.
Negotiations are taking place, said a spokeswoman for Enel, Italy’s biggest utility. She declined to be named or provide additional details. Spanish newspaper Expansion reported today that Endesa is finalizing a deal to sell its gas network to the Goldman fund for 800 million euros ($1.07 billion).
“The sale of assets is being finalized,” Guillermo Errea, a spokesman for Endesa in Madrid, said, declining to confirm or deny the Expansion report. “It could be done in the next few hours but it could also collapse.”
A spokeswoman for Goldman Sachs in London declined to comment on the Expansion report.
Enel owns 92 percent of Endesa after gaining control of the Spanish power company in 2007. As part of that deal, Endesa transferred some renewable-energy units to builder Acciona SA and sold assets to Germany’s E.ON AG. The company is selling more units to increase savings after the takeover.
Earlier this month, a person with knowledge of the matter said funds associated with Macquarie Bank Ltd., Goldman Sachs and Axa Private Equity had made offers for the Endesa natural- gas distribution and transmission assets, which may be valued at as much as 750 million euros.
Binding Offers
Endesa Chief Executive Officer Andrea Brentan on July 28 said the Spanish company was expecting binding offers for 80 percent of its natural-gas distribution and transmission assets in Spain in September.
Rome-based Enel will meet a target to cut debt 6 billion euros to 45 billion euros after completing the initial public offering of renewable-energy unit Enel Green Power, and selling the Spanish gas distribution assets and a stake in a Bulgarian coal-fired plant, Enel Chief Executive Officer Fulvio Conti said in a Sept. 21 interview.
Endesa shares have dropped 17 percent in Madrid this year, cutting the company’s market value to 21 billion euros. Enel has declined 5.3 percent in Milan trading this year, giving the utility a market value of 36 billion euros.
Red Electrica Corp. SA, the manager of Spain’s power grid, on July 1 said it agreed to pay Endesa 1.27 billion euros for electricity transportation assets in regions including the Balearic and Canary Islands. Earlier this year, Endesa sold its stake in the Sagunto regasification plant to Osaka Gas Co.
Endesa had power generation capacity of 39,108 megawatts at the end of June, including 34 percent in hydropower plants, 24 percent in fuel oil units, 16 percent each in coal- and gas- fired plants and 9 percent in nuclear reactors. Iberdrola SA is Spain’s biggest electricity company.
To contact the reporters on this story: Alessandra Migliaccio in Rome at amigliaccio@bloomberg.net; Joao Lima in Lisbon at jlima1@bloomberg.net.
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
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