Enel to sell equity in Enel Generación Perú and Compañía Energética Veracruz for $1.4bn

Enel S.p.A., through its subsidiaries Enel Américas S.A. and Enel Perú S.A.C., has entered into a significant agreement with Niagara Energy S.A.C., a Peruvian company controlled by the global investment fund Actis. This strategic deal involves the sale of all equity stakes held by the Enel Group in power generation companies Enel Generación Perú S.A.A. and Compañía Energética Veracruz.

The total consideration for this transaction is approximately 1.4 billion US dollars, translating to an overall enterprise value of around 2.1 billion US dollars. The agreement specifies that Niagara Energy will acquire Enel Perú and Enel Américas’ shares in Enel Generación Perú (approximately 66.50% and 20.46%, respectively) and Enel Perú’s entire stake in Compañía Energética Veracruz.

Financial Implications and Transaction Details

This transaction is expected to significantly reduce the Group’s consolidated net debt by about 1.6 billion euros between 2023 and 2024. It also anticipates a positive impact on the Group’s net income in 2024, estimated at around 60 million euros. The sale is conditioned upon customary prerequisites, including approval from the Antitrust authority in Peru. A full takeover bid by Niagara Energy is planned following the satisfaction of these conditions.

Enel Group to divest major stakes in Peruvian energy companies to Actis-controlled Niagara Energy

Strategic Reorientation of Enel Group

Aligning with its Strategic Priorities, the Enel Group is repositioning its focus on countries with higher growth potential and integrated presence, such as Italy, Spain, the USA, Brazil, Chile, and Colombia. Since 2007, the Enel Group has been a prominent player in the Peruvian energy sector, catering to over 1.6 million end users and holding more than 2.4 GW of installed capacity, predominantly from renewable sources.