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.