The agreement to take over Enel assets in Romania by PPC received positive feedback from Fitch and S&P, informs the Greek company in a press release, emphasizing that the takeover will not affect Enel employees in Romania and customers will continue to be served under the conditions existing contracts, according to the legislation in force.
“The agreement to take over Enel assets in Romania by PPC received positive feedback from both Fitch and S&P. The acquisition of Enel Romania aligns with PPC’s energy transition strategy, but also with its expansion plan in Southern Europe East, allowing the exploration of growth opportunities in a less congested market. Enel’s activities in Romania represent the ideal choice, both geographically and from a business point of view, thus strengthening PPC’s presence in the region. Romania is a market important from a strategic point of view for PPC,” the press release states, according to Agerpres.
According to the cited source, with the completion of the acquisition, the PPC Group will strengthen its position in the region and become the largest player on the energy market in Southeast Europe. Specifically, it will exceed 11 GW of installed capacity and serve 8.9 million customers, across multiple markets, with approximately 41 TWh of electricity supplied, 78 TWh distributed and over 27 TWh generated, while the regulated asset base (RAB) will reach 4.15 billion euros.
At the same time, following the acquisition, it is expected that EBITDA will increase by 30%, from around 0.9 billion euros, to around 1.2 billion euros (estimated based on the estimated results at the end of 2022).
Company representatives state that, at the moment, PPC is focusing on finalizing the agreement with Enel, by the third quarter of the year, and ensuring a smooth transition for all Romanian customers and employees.
“The company will continue its activity under normal conditions, without changes for Enel customers or employees. Customers will continue to be served under the existing contractual conditions, according to the legislation in force. The takeover will not affect in any way the Enel employees in Romania, who will be a important part of future growth plans,” the press release also states.
PPC aims to continue and develop what Enel has built over the last 18 years in Romania in terms of green energy, electric mobility, customer portfolio and value-added services.
“We see many opportunities in the local market and we intend to invest in the development of operations in Romania,” claim the representatives of the Greek company.
Georgios Stassis, President and CEO of PPC, indicated that in 2022, PPC managed to cope with the unprecedented conditions of volatility and uncertainty that prevailed in the markets where it is present, throughout the year, while also implementing the business plan.
“These results reiterate the resilience of our operational profitability over the last 3 years, with recurring EBITDA being in the region of 0.9 billion euros, despite extraordinary conditions such as Covid-19 and the energy crisis. We made selective acquisitions in Greece and signed the agreement on the acquisition of the platform integrated company of Enel in Romania, which we consider a unique opportunity and the ideal choice, both geographically and from a business point of view, strengthening PPC’s presence in the region. We continue to focus on the transformation of PPC and the implementation of the our business Plan, honoring our commitment to distribute dividends in 2024 based on profits in 2023. Regarding the acquisition agreement in Romania, we are focused on completing the transaction by the third quarter of 2023, after which we will present the Updated Strategic Plan on Capital Markets Day,” said Georgios Stassis.