(Alliance News) - Enel Spa has announced that Enel Brasil SA, a subsidiary through Chilean listed company Enel Américas SA, has finalized the sale of its entire stake in Brazilian power distribution company CELG Distribuição SA CELG D, amounting to about 99.9 percent of the latter's share capital, to Equatorial Participações e Investimentos SA, a subsidiary of Equatorial Energia SA.

Enel Goiás is a Brazilian electricity distribution company in Goiás State, with a concession area of 337,000 km2, and 3.3 million customers in 237 municipalities.

Equatorial is the third largest electricity distribution group in Brazil by number of customers. The company operates six concessionaires in the states of Maranhão, Pará, Piauí, Alagoas, Rio Grande do Sul, and Amapá, serving about 10 million customers in these regions.

In line with the purchase and sale agreement signed in September 2022, the finalization of the sale follows the approval of the transaction by the boards of directors of Enel Brasil and Enel Américas, as well as the fulfillment of certain additional conditions precedent including the approval of the Brazilian Electricity Authority and the Brazilian Competition Authority.

Enel Brasil finalized the sale of its entire stake in Enel Goiás for a total consideration of approximately BRL8.5 billion Brazilian reals-equivalent to approximately USD1.6 billion-subject to post-closing price adjustment.

"In total, the transaction generated a positive effect on the group's consolidated net debt of approximately EUR1,500 million, as well as a negative effect on the group's reported net income of approximately EUR850 million, of which EUR693 million has already been accounted for in the group's interim report as of September 30, 2022. The economic impact will have no effect on ordinary results. These amounts do not include the possible effects of the earn-out mechanism mentioned above," the company explained in a note.

Enel's stock is down 0.6 percent at EUR5.07 per share.

By Claudia Cavaliere, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2022 Alliance News IS Italian Service Ltd. All rights reserved.