Italy’s Enel To Invest EUR220M In Electrica Muntenia Sud By 2011

The investment project is part of Enel’s EUR1 billion investment program for the next 15 years in Electrica Muntenia Sud.

Enel finalized end-June the takeover deal of a 64.4% stake in Electrica Muntenia Sud, following the EUR425 million share capital hike.

Electrica Munteia Sud is the sole electricity distributor for residential and industrial customers in the Romanian capital city Bucharest.

Enel paid in April EUR394.8 million for a 51% stake in Electrica Muntenia Sud and carried out a share capital increase in order to own a 67.5% stake in the company, by subscribing new shares worth EUR425.2 million.

Romanian investment fund Fondul Proprietatea took part in the share capital hike and kept its 12% stake.

State-owned power grid Electrica SA, former owner of Electrica Muntenia Sud, holds the rest of 23.6% in the company.

The company agreed in 2006 to pay EUR820 million for a 67.5% stake in Electrica Muntenia Sud, but its takeover has been delayed while Romanian justice authorities investigated previous privatization deals.

Electrica Muntenia Sud distributed 5.54 TWh of energy in 2007, and reported EUR521 million in revenues.

The Italian company already owns two Romanian regional power distributors, Enel Electrica Dobrogea and Enel Electrica Banat, which it acquired from former monopoly supplier Electrica SA.