Enel agrees sale of hydropower stake to Macquarie’s MEIF4

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Enel agrees sale of hydropower stake to Macquarie’s MEIF4

Enel S.p.A.through its subsidiary Enel Produzione S.p.A. and Fedaia Holdings S.à.r.l., a Luxemburg-based subsidiary of Macquarie European Infrastructure Fund 4 (MEIF4), managed by Macquarie Infrastructure and Real Assets, have signed an agreement for the sale of the entire stake held by Enel Produzione in Hydro Dolomiti Enel S.r.l. (HDE), equal to 49% of the share capital, for a consideration of about €335 million (US$360.7 million). The sale price will be subject to customary completion adjustments.

HDE operates hydropower plants, mainly located in the Province of Trento, with a total installed capacity of about 1,280 MW. More specifically, the assets comprise 26 large hydro power plants, for a total of 1,277.3 MW, and 2 small hydro power plants, totalling 2.4 MW.

HDE generated 4.2 TWh of electricity in 2014, and the same year the company reported EBIDTA of €247 million (US$266 million).

The closing of the sale is conditional on Dolomiti Energia S.p.A. (which holds the remaining 51% of HDE) waiving or not exercising its right of pre-emption and on the buyer receiving clearance from the EU antitrust authority. The transaction will enable the Enel Group to reduce its consolidated net financial debt by an amount equal to, approximately, the total consideration noted above.

The transaction is part of the divestments of minority shareholdings provided for in the Enel Group's active portfolio management strategy also aimed at financing further growth opportunities announced to the market last March.

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