Italy's Enel plans two-step sale of Slovenske Elektrarne stake
31 July 2015
Enel plans to sell its 66% stake in Slovenské Elektrárne in two stages - through the sale of a minority stake by the end of this year and the remainder once construction of two nuclear power units at Mochovce nuclear power plant in Slovakia has been completed. The Slovak government owns the remaining 34% in the country's biggest power producer.
In a presentation to analysts of the Italian utility's financial results for the first six months of this year, Enel CEO Francesco Starace said completion of units 3 and 4 at Mochovce are now expected about one year later than previously planned - in 2017 and 2018, respectively.
Enel has received two final offers for its stake, or part of its stake, in Slovenské Elektrárne - from Energetický a Průmyslový Holding (EPH) and Mol Nyrt - and another offer is in the process of being completed, Starace said. EPH is a Czech energy company, while Mol Nyrt is a Hungarian-Slovak consortium of MVM Group and the refinery Slovnaft. Finland's Fortum and China National Nuclear Corporation are also reportedly interested in buying a stake.
Starace acknowledged that the Slovak government may seek to increase its current share.
According to a report by Italpress on 21 July, Starace said Enel will sign a memorandum of understanding on the sale of shares in Slovenské Elektrárne around the end of this month.
Enel said that its first-half net profit increased by 3.4% year on year on higher electricity demand in Latin America along with growth in renewables. The company is increasingly focused on its Latin American business, Starace said, and aims to raise €5 billion ($5.6 billion) from asset sales, which include its stake in the Slovakian power producer.
In 2006, Enel paid €840 million ($1.1 billion) for its 66% stake in Slovenské Elektrárne and, as part of the transaction, it agreed to complete construction of two additional reactors at the Mochovce nuclear power plant. The Italian utility launched a program in July last year to sell its holdings in Romania and Slovakia, including its stake in Slovenské Elektrárne. Divestment of these assets is part of a €6 billion ($8 billion) asset sale begun by Enel in 2013 to reduce the group's financial debt.
Construction began on the two additional units at Mochovce in 1986 and resumed in 2008 after a 16-year hiatus. Mochovce 3 and 4 had been expected to start up in 2012-2013 and the estimated cost of completing the project has risen from €2 billion in 2007 to €4.6 billion.
Researched and written
by World Nuclear News