Endesa expects to complete sale of assets to E.ON shortly 12/03/2008 00:00

Leading Spanish electricity supplier Endesa said Tuesday it expects to complete the agreed sale of some of its assets to German power company E.ON soon, provided there are no discrepancies over their valuation.

12 March 2008

MADRID - Leading Spanish electricity supplier Endesa said Tuesday it expects to complete the agreed sale of some of its assets to German power company E.ON soon, provided there are no discrepancies over their valuation.

Italy's Enel and Spanish conglomerate Acciona agreed last year to sell some Endesa assets worth some EUR 10 billion in Spain, Italy, France and Poland in exchange for the German company dropping its takeover bid for Endesa. Acciona and Enel eventually completed a joint takeover bid for the Spanish electricity company.

Javier Rodríguez Soler, Endesa's director for relations with investors, said yesterday that Enel-Acciona and E.ON had hired separate banks to value the assets to be sold. He said if there is less than a 10-percent difference in the two sets of valuations, the sale of the assets could proceed by the end of this month.

Earlier on Tuesday, Endesa issued a statement saying that the assets to be sold to E.ON would generate combined gross operating profit of EUR 2.216 billion in 2012. In order to achieve that figure investments of EUR 4.266 billion would be required in the Italian and French units and a further EUR 374.3 million in the three power plants in Spain Endesa is selling.

[Copyright El Pais / ADRIAN SOTO 2008]