Monday, September 27, 2010

Enel's Endesa to sell gas transport network


Italian energy company Enel SpA says its Spanish subsidiary Endesa is selling its gas transport and distribution network to investment funds.

Enel said in a release Monday that the Spanish subsidiary is selling an 80 percent stake in Endesa Gas SA to two funds operated by Goldman Sachs.

The sale will shave euro800 million ($1.07 billion) off of Endesa's debt and contribute euro450 million to its pre-tax profit.

Enel says Endesa may exercise a call option to repurchase the stake between five and seven years after closing.

Enel, Italy's largest utility, owns more than 90 percent of Endesa.


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