(Alliance News) - Enel Spa announced Wednesday that it has signed an agreement to divest all assets in Peru to Niagara Energy SAC.

The transaction is being carried out through subsidiaries Enel Américas SA and Enel Peru SAC, and the assets sold refer to Enel Generaciòn Peru SAA and Compaañía Energética Veracruz SAC.

Specifically, the agreement stipulates that Niagara Energy will acquire the stakes held by Enel Perú and Enel Américas in Enel Generación Perú - equal to about 66.5 percent and 20.5 percent of the latter's share capital, respectively - and by Enel Perú in Compañía Energética Veracruz, equal to 100 percent of the latter's share capital, for a total consideration of about USD1.4 billion, corresponding to about USD2.1 billion in terms of total enterprise value.

This consideration is subject to usual adjustments for this type of transaction in view of the time that will elapse between the signing of the agreement and the completion of the transaction.

Enel expects that, in total, the transaction will generate a reduction in the group's consolidated net debt of about EUR1.6 billion in 2023-2024 and a positive impact on the group's reported net income in 2024 of about EUR60 million. On the other hand, the transaction is not expected to have any impact on the group's ordinary results of operations.

"The sale is in line with the group's strategic priorities of repositioning Enel on countries where the group has higher growth potential and an integrated presence, specifically Italy, Spain, the US, Brazil, Chile and Colombia," the company said.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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