Enel SpA on Sept. 4 gave an update regarding the deal between its subsidiary Enel Produzione S.p.A. and Energeticky a Prumyslovy Holding a.s. subsidiary EP Slovakia BV.
Under the deal, first announced in December 2015, Enel Produzione will sell its 100% stake on Slovak Power Holding BV, which represents a 66% interest in Slovenské Elektrárne A.S., to EP Slovakia for €750 million, over two phases.
The first phase of the transaction was completed in July 2016, when Enel Produzione closed the sale of its 50% stake in Slovak Power, representing a 33% stake in Slovenské Elektrárne.
The second phase of the transaction is expected to close when the parties exercise their option for EP Slovakia to buy the remaining 50% in Slovak Power. This could occur as early as 12 months after a trial operation permit is obtained for the unit 4 of the Mochovce nuclear facility, or upon reaching the "long stop date."
On Sept. 4, Enel Produzione said it will grant a subordinated loan of up to €700 million, due January 2027, to Slovak Power. Those funds are expected be made available to Slovenské Elektrárne. The second phase of the transaction is now subject to the advance repayment of the loan or its final maturity date, according to a company news release.
The long stop date, which was initially set at June 30, 2022, was also extended by a year.
According to S&P Global Market Intelligence data, the Slovak Government sold a 66% stake in Slovenské Elektrárne to Enel SpA for €840 million in 2006. Enel agreed to sell its stake in Slovenské Elektrárne in 2015, as part of the company's plan to divest assets in Slovakia and Romania.