Enel to sell stakes in Enel Distribución Perú and Enel X Perú to CSGI for $2.9bn

Enel’s subsidiary Enel Perú has agreed to divest its distribution, supply, and advanced energy services to China Southern Power Grid International (HK) or CSGI in short for nearly $2.9 billion.

The deal involves Enel Perú’s stake of 83.1% in Enel Distribución Perú, a power distribution and supply company, and 100% of Enel X Perú, a provider of advanced energy services.

Enel said that the deal is in line with the company’s ongoing strategic plan, which envisages the successful completion of the restructuring of its position in six countries, which include Italy, the US, Brazil, Spain, Chile, and Colombia, in order to increase the value of its products.

The transaction is expected to result in a reduction of the Italian energy company’s net debt of around €3.1 billion in 2023 and will have a positive impact this year on the reported group net income, which is about €500 million.

However, the transaction is not expected to have any effect on the group’s ordinary economic performance.

Francesco Starace — Enel Group CEO and General Manager said: “With this transaction, we are able to maximize the value of the investments carried out so far in grid digitalization and advanced energy services in Peru as we continue to implement the asset disposal plan announced to the markets during the presentation of Enel’s Strategic Plan last November and aimed at finalizing the Group’s streamlining process that has always been a cornerstone of our Strategy.”

The closing of the deal is subject to antitrust clearance in Peru and Chinese approvals for outbound direct investments.