Enel halts stake sale in Greek renewable business

The proposed sale of a 50% interest in Enel SpA’s (BIT:ENEL) Greek renewable energy subsidiary has been temporarily frozen, Greek news portal Newmoney reports.

Talks to finalise the transaction will take longer than originally expected due to the recent management changes at the Italian group, unnamed sources have said. Enel’s new CEO Flavio Cattaneo is allegedly taking time to assess the decisions of his predecessor regarding the revamp of the company’s businesses and the sales model for the Greek deal, which was initially said to involve full divestment.

Australia’s Macquarie Group was reported to be the preferred suitor for the 50% stake in Enel Green Power Hellas. According to unconfirmed information reported by the paper, Enel plans to include a clause in the agreement that will provide it with an option to buy back the stock.

Enel Green Power Hellas owns 65 assets, of which 368.5 MW of wind, 163.7 MW of solar and 19.3 MW of hydroelectric, as of end-September 2022, its website shows.

The Greek sale is part of Enel’s plan to tighten spending in 2023-2025 by shedding assets worth EUR 21 billion (USD 22.6bn) as it works to bring down net debt and focus on six core markets. The strategy envisages disposals in Romania, Peru, Argentina and Brazil.

(EUR 1.0 = USD 1.075)

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