PPC’s ENEL Romania takeover talks at price under local standards

Power utility PPC appears to have reached an advanced stage in its negotiations with Italy’s ENEL for the acquisition of the latter’s Romanian subsidiary ENEL Romania, the various aspects of the deal said to be at price levels well below Greek market standards.

PPC’s offer for ENEL Romania’s retail division, for example, totaling approximately three million customers, results in a price of less than 90 euros per customer, which is less than half than the cost of recent corresponding acquisitions completed in the Greek market.

Mytilineos’ acquisition of Watt+Volt, an energy supplier with a portfolio numbering 200,000 customers, was worth 36 million euros, or 180 euros per customer.

The ENEL Romania deal’s price concerning networks is also being negotiated at a price level well below the cost of corresponding acquisitions recently completed in Greece. The price paid by Australia’s Macquarie for a 49 percent stake in Greek distribution network operator DEDDIE/HEDNO works out to 20 percent over the level being discussed between PPC and ENEL for ENEL Romania’s networks.

The same goes for the Romanian subsidiary’s renewable energy division. For example, Motor Oil acquired ELTECH Anemos for a figure twelve times its EBITDA, whereas the Romanian subsidiary’s RES portfolio is being negotiated at a price level of less than ten times its EBITDA.

PPC is negotiating a full acquisition of ENEL Romania for a takeover promising to expand the Greek utility’s interests in the Balkans, with the region’s fastest-growing economy as a base.


European player in advanced Eltech Anemos takeover talks

A key European energy firm currently not present in the Greek market is believed to be engaged in advanced takeover talks with Eltech Anemos, a listed company ranked among Greece’s top three green energy players.

The Eltech Anemos portfolio includes installed wind energy facilities in various parts of Greece with a total capacity of 241 MW. Eltech Anemos is also currently developing seven new wind parks with a total capacity of 145 MW. Taking into consideration licenced projects, the Eltech Anemos portfolio’s capacity reaches 636 MW.

Though the takeover talks between Eltech Anemos and its possible buyer, still undisclosed, are said to have reached an advanced stage, the two sides still need to cover plenty of ground in their effort to reach a deal.

In recent years, Eltech Anemos has also been involved in takeover talks with other prospective buyers, local and foreign, to no avail.

Eltech Anemos is controlled by Ellaktor, a major corporate group whose interests include investments in the energy and construction sectors, with a 64.5 percent stake. Anastasios Kallitsantsis, Ellaktor’s president, holds a further 7.096 percent of Eltech Anemos.

In its nine-month results for 2017, Eltech Anemos posted a turnover figure of 35.2 million euros and pretax profit of 10.1 million euros. The firm’s total debt was 184.98 million euros, including 163.19 million in long-term loans.