Enel has taken a decisive step by signing an agreement to sell its shares in two major Peruvian subsidiaries to Niagara Energy, a Peruvian company controlled by the Actis investment fund. The transaction, valued at 1.3 billion euros, is part of a strategic plan to significantly reduce the Group’s debt.
Transaction details
This sale, of 86.96% of the shares in Enel Generación Perú and 100% of the shares in Compañía Energética Veracruz, represents a key decision in Enel’s 2023-2025 strategic plan. In fact, this initiative should help reduce Enel’s debt by 1.6 billion euros between 2023 and 2024, and have a positive impact on the company’s net profit in 2024, with a forecast of around 60 million euros.
Impact on Enel debt
This maneuver is part of a wider program of asset disposals, totaling 21 billion euros, aimed at reducing the Group’s indebtedness. It reflects Enel’s strategic refocusing on markets with higher growth potential.
Enel’s Asset Disposal Strategy
The company intends to focus primarily on Italy and Spain in Europe, while maintaining a significant presence in the United States, Brazil, Chile and Colombia.
Focus on Key Markets
Beyond this sale, Enel’s financial situation calls for a more in-depth analysis. The Group’s net debt climbed to 63.3 billion euros at the end of September 2023, marking an increase of 5.4% compared with the end of 2022. This increase was mainly due to substantial investments and the payment of dividends.
Analysis of Enel’s Financial Position
This sale is in line with Enel’s strategic orientations, which seek a balance between debt reduction and positioning in key markets.
The agreement with Niagara Energy therefore represents an important milestone in the achievement of these strategic objectives, while guaranteeing a solid presence in regions deemed essential for the Group’s future growth.
Enel’s agreement with Niagara Energy for the sale of its Peruvian subsidiaries illustrates a well-thought-out strategy aimed at reducing debt and refocusing on key markets. This move, part of the 2023-2025 strategic plan, paves the way for a more stable financial future for Enel, while highlighting the challenges and opportunities facing the global energy sector.
