(Alliance News) - Enel Spa has announced that, with the aim of rationalizing the management of the distribution networks that interoperate in Lombardy, its subsidiary e-distribuzione Spa has signed an agreement with A2A Spa to transfer to the latter 90% of the share capital of a newly established corporate vehicle into which the electricity distribution activities in some municipalities in the provinces of Milan and Brescia will be transferred.

As the company explained, the agreement provides for the recognition by A2A of a consideration of about EUR1.2 billion, defined on the basis of an Enterprise Value - referring to 100% - of about EUR1.35 billion.

Upon completion of the transaction, e-distribution will retain a 10% stake in NewCo's share capital, functional to the company's start-up phase.

The company expects the transaction to generate a positive effect on the Enel group's consolidated net financial debt in 2024 of about EUR1.2 billion and a positive impact on the group's reported net income of about EUR1 billion.

On Friday, Enel closed down 0.2 percent at EUR6.13 per share, while A2A closed in the green by 0.8 percent at EUR1.75.

By Claudia Cavaliere, Alliance News reporter

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