PPC signed an agreement for the acquisition of a further stake in electricity distribution and supply companies in Romania, following the agreement with Enel on March 9, 2023 for the acquisition of all of Enel’s holdings in Romania.

The new agreement concerns Fondul Proprietatea’s shareholdings in 3 distribution companies (e-distributie Mountenia (EDM), e-distributie Banat (EDB) and e-distributie Dobrogea (EDD) and two supply companies: Enel Energie Muntenia (EEM) and Enel Energie (EE). The deal includes the sale to PPC of all minority interests in all five companies, i.e. 12% of EDM, 24.1% of EDB, 24.1% of EDD, 12% of EEM and 12% of the EU for the amount of approximately 131 million Euros.

“PPC acquires the holdings of Fondul at a discount of more than 26%, simultaneously increasing its expected return (IRR) from the upcoming investment in the Romanian market and acquiring a stronger role in the Target Companies and especially in the Distribution Networks, where it acquires statutory majority,” the company says.

The completion of the sale based on the agreement with Fondul is subject, among other things, to the completion of the transaction between Enel and PPC.

The new agreement announced today is a continuation of the acquisition of Enel Romania as, according to the Privatization Agreement signed by ENEL when it acquired the Distribution and Supply companies from the Romanian State, attachment rights are foreseen for the minority shareholders (SAPE and FONDUL), in case where ENEL was proceeding with the sale of its participation in the companies EDM and EEM.