Italian utility group Enel SpA has extended the exclusivity period for negotiations with Greek state-owned company Public Power Corp (PPC) regarding the potential sale of its operations in Romania until the end of February, Bursa reported. A deal was expected for the first week of the month.

In December, PPC, the largest utility company in Greece, concluded an exclusivity agreement with Enel regarding the possible acquisition of its assets in Romania.

The parties "will inform the market if they conclude a binding agreement on the transaction", Enel informed on February 4 in a statement posted on its website.

The announcement comes at a time when Enel is facing an increase in its debt level. The debts of the Enel group rose to EUR 69 bln at the end of September 2022.

The group's strategy for the period 2023-2025 envisages a quick decrease of the debt to EUR 51-52 bln by the end of this year as it intends to sell assets worth EUR 21 bln to reduce its net debt, to focus on its presence in six countries.The bulk of the asset sale plan - which targets, among others, assets in Romania, Argentina and Peru - will be completed by the end of 2023.

andrei@romania-insider.com

(Photo source: Enel)