Enel in talks with EPH over Slovenské Elektrárne stake

Italian utility Enel announced today that it is in exclusive negotiations with Czech energy company Energetický a Průmyslový Holding (EPH) to sell its 66% stake in Slovak nuclear power producer Slovenské Elektrárne. Enel said it may sign a binding share purchase agreement with EPH "in the coming weeks".

Enel paid €840 million ($1.1 billion) in 2006 for its 66% stake in Slovenské Elektrárne and, as part of the transaction, it agreed to complete construction of two additional reactors at the Mochovce nuclear power plant. The Italian utility launched a program in July last year to sell its holdings in Romania and Slovakia, including its stake in Slovenské Elektrárne. Divestment of these assets is part of a €6 billion ($8 billion) asset sale begun by Enel in 2013 to reduce the group's financial debt.

At the end of July, Enel announced plans to sell its stake in Slovenské Elektrárne in two stages - through the sale of a minority stake by the end of this year and the remainder once construction of two nuclear power units at Mochovce nuclear power plant in Slovakia has been completed. The Slovak government owns the remaining 34% in the country's biggest power producer.

In a presentation to analysts of the Italian utility's financial results for the first six months of this year, Enel CEO Francesco Starace said completion of units 3 and 4 at Mochovce are now expected about one year later than previously planned - in 2017 and 2018, respectively.

In addition to the offer from EPH - the second largest electricity producer in the Czech Republic - for some or all of its stake in Slovenské Elektrárne, Enel also received a final offer from Mol Nyrt, a Hungarian-Slovak consortium of MVM Group and the refinery Slovnaft. Finland's Fortum and China National Nuclear Corporation had also reportedly been interested in buying a stake.

Researched and written
by World Nuclear News