Enel Plans to Raise About $3.4 Billion Through Endesa Share Sale

Enel SpA, Italy’s largest utility, plans to sell 17 percent of Spanish unit Endesa SA this week in a public share offering.

The sale may occur on Nov. 7, Enel said in a statement today, without disclosing the price of the offering. Based on yesterday’s closing price, the sale could raise about 2.69 billion euros ($3.37 billion), making it the largest share offering in Spain this year, data compiled by Bloomberg show. The sale could be increased to 22 percent, Enel said.

Enel is selling part of its 92 percent stake in Endesa as the Rome-based utility attempts to slash debt amid weak demand for electricity in Italy and Spain. Enel earlier this year announced a reorganization of its divisions and increased control over its Latin American unit Enersis SA through the purchase of a 60.6 percent stake held by Endesa.

Endesa dropped as much as 4.1 percent in Madrid trading today, while Enel gained as much as 1.6 percent in Italy.

The sale will be done through a public offering to retail investors in Spain as well as through institutional investors. Further details will be included in a yet to be published prospectus.

Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA, Credit Suisse Group, JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, UBS AG and Mediobanca SpA are advising on the deal, according to today’s filing.

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