Friday, June 6, 2008

Enel closes purchase of Romania's Muntenia Sud

MILAN, June 5 (Reuters) - Italian power company Enel SpA has completed its purchase of a controlling stake in Romania's Electrica Muntenia Sud (EMS) in a 820 million euro deal, Enel said on Thursday.

Enel, Italy's dominant utility, holds a 64.4 percent stake in EMS as part of a privatisation accord agreed last year, it said in a statement.

Enel bought 50 percent of EMS from state-controlled Electrica SA for 395 million euros on April 25, and subscribed to a capital increase of 425 million euros.

Enel plans to invest a billion euros in EMS over the next 15 years, Chief Executive Officer Fulvio Conti said in the statement.

Investment fund Fondul Proprietatea holds 12 percent of EMS and Electrica 23.6 percent. EMS is the only power distributor in Bucharest, Romania's capital.

Enel shares were up 0.46 percent at 7.20 euros at 1144 GMT, in line with the DJ Stoxx utilities index. (Reporting by Ian Simpson)

No comments: