DEDDIE bidders shaping teams as first-round deadline nears

Investors preparing to participate in the 49 percent sale of power utility PPC’s subsidiary DEDDIE/HEDNO, the distribution network operator, a procedure whose deadline for non-binding expressions of interest expires on February 19, are busy negotiating the details of their partnerships.

Between five and seven existing formations involving European system operators and funds, all appearing extremely interested in the sale, are seen reshaping into approximately three investment teams ahead of this week’s deadline, according to sources.

The investment interest is serious and lives up to the operator’s investment plan, estimated at 2.3 billion euros, for the next five-year period, sources said.

Meanwhile, sources at PPC have confirmed that investors will be offered a one-off 49 percent stake in the distribution operator following thoughts of a two-stage sale resulting in this stake.

The managerial rights to be attached to the minority 49 percent stake will be bolstered to give potential buyers equal powers with PPC over the operator’s new business plan and company expenses, PPC sources informed.

DEDDIE/HEDNO possesses a regulated asset base worth over 3 billion euros, networks totaling 242,000 km in length, 240 high-voltage substations, 163 low-voltage substations, a 5,800-member workforce, and a client base numbering 7.5 million.

The company caters to annual demand of 43.194 TWh and 57,752 RES units with a total capacity of 3,926 MW.