Enel to Cash In EUR130 Million from Endesa Asset Sale to Cut Debt

  By Liam Moloney 
 

Enel SpA (ENEL.MI), Italy's biggest utility that built up its debt after taking over a Spanish rival, Friday said Endesa SA (ELE.MC) agreed to sell an asset that will allow it further reduce its debt burden.

Enel's Endesa agreed to sell the remaining 20% stake in gas transportation and distribution firm Endesa Gas T&D SL to two funds managed by Goldman Sachs Group Inc. (GS) for 130 million euros ($174.2 million), said the Spanish utility. The transaction will take place by the end of the year.

"The EUR130 million from this disposal, once cashed in, will be fully dedicated to the reduction of Enel net debt," said an Enel spokeswoman.

"The transaction announced today represents a step further to fulfill our EUR6 billion disposal programme to be completed by the end of 2014," she added.

Enel turned into Europe's most indebted utility after taking over Endesa in 2007. Since then it has focused on reducing the debt level.

Thursday, Enel reported net debt at the end of September dropped to EUR43.99 billion from EUR44.52 billion as part of its third-quarter results. Chief Executive Fulvio Conti said the Rome-based utility expects net debt for the end of 2013 to be lower than the EUR42 billion it had earlier forecast.

Write to Liam Moloney at [e-mail]

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