Greece’s PPC buys out minority stakeholder in five Romanian power utilities

Public Power Corp., controlled by the Greek government, agreed with Fondul Proprietatea to buy its stakes in five power distribution and supply firms in Romania for EUR 132 million. The deal with the minority shareholder follows PPC’s deal to acquire Enel’s entire portfolio in the country.

Fondul Proprietatea, a minority shareholder in the companies owned by the Enel Group in Romania, concluded a contract for the full sale of its holdings in five power utilities to Greece-based Public Power Corp. (PPC or DEI). The price is RON 650 million (EUR 132 million at the current exchange rate), according to the investment fund, in which the Government of Romania has a small stake.

The deal follows PPC’s deal from last month to take over Enel’s operations in Romania for EUR 1.26 billion. Greek news outlets reported that Fondul Proprietatea sold its share in the businesses at a 26% discount to the initial total valuation.

PPC increased its stakes in target firms at a 26% discount

According to media reports, state energy investment fund SAPE declined PPC’s offer to sell its minority holdings. The latest deal is conditioned, among other factors, by the completion of the transaction between the Greek company and Enel.

Fondul Proprietatea sold its minority stakes in distribution firms E-Distribuţie Muntenia (12%), E-Distribuţie Dobrogea (24%) and E-Distribuţie Banat (24%) as well as in power supply businesses Enel Energie Muntenia (12%) and Enel Energie (12%). Its last annual report shows that the holdings in Enel Romania made up 4.4% of its net asset value.

PPC is also active in Bulgaria since 2015 while it entered the Albanian market in 2016 and started its business in North Macedonia in 2018.