Enel to shed Peruvian generation ops to Actis in USD-1.4bn deal

Chile-listed Enel Americas SA and Enel Perus SAC have agreed to sell their equity stakes in two Peruvian power generation companies to Actis-controlled Niagara Energy SAC for a total of USD 1.4 billion (EUR 1.28bn).

The agreed transaction, with an overall enterprise value of about USD 2.1 billion, involves Enel Generacion Peru SAA and Compania Energetica Veracruz SAC as the target companies. Upon completion, Niagara Energy will hold a total interest of nearly 87% in the former and 100% in the latter.

As a result of the sale, the Enel Group will reduce its consolidated net debt by about EUR 1.6 billion (USD 1.75bn) this and next year. It also expects a positive impact on the group’s reported net income for 2024 of some EUR 60 million.

Closing of the transaction is seen by the second quarter of 2024 and is subject to clearance from the competent Antitrust authority in Peru.

Present in Peru since 2007, the Enel Group has more than 2.4 GW of installed capacity in the country, most of which comes from renewable sources. It also has a power distribution and supply business there that serves around 1.6 million end users in northern Lima.

(USD 1.0 = EUR 0.916)

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