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PPC’s growth strategy following the takeover of Enel Romania

17 August 2023

Published with the support of PPC

One of the biggest transactions in the last decades – the acquisition of Enel Romania by Public Power Corporation (PPC) – is to be completed soon. Following the takeover in Romania, PPC strengthens its position in the wider region and becomes a leading player in Southeast Europe.

With a market capitalization exceeding €3 billion, PPC is a leading and fast-growing company with solid financial results in recent quarters. The group aims to continue and further grow on what Enel has built in the past 18 years in Romania, in terms of green energy, electric mobility, customer portfolio and value-added services. Romania is as an extremely important market for PPC, for several reasons. The country’s green energy potential is one of the most important. Enel Romania has a substantial renewables pipeline with cumulative capacity of c.5.4GW, with projects in various phases of development, of which 2.3 GW wind and 3.1GW solar. This pipeline adds up to PPC’s own 10 GW pipeline, a 50% increase, allowing for high short, medium, and long-term renewables growth.

PPC has an accelerated green energy investment strategy in both Greece and Romania. Thus, the Greek company has already signed two other transactions – the purchase of two photovoltaic parks of approximately 210 MW in the south of Romania and of an 84 MW wind park in Tulcea county.

These investments confirm the statements of PPC representatives, who see Romania as a market that offers many opportunities for growth and development, being a less congested one.

In terms of distribution and supply, Enel companies in Romania are present in three important regions – South Muntenia (including Bucharest), Banat and Dobrogea, serving over 3 million customers, with a network of over 130,000 km.

“Most of the Enel Romania’s EBITDA comes from the distribution activity, which is regulated and, by definition, very stable, so it will have a positive impact on PPC Group’s EBITDA. In addition, all Enel Romania’s electricity production comes from renewable energy sources, which increases the percentage of green EBITDA in the total EBITDA and improves the relevant ESG indicators”, PPC CEO and president Georgios Stassis declared.

The transaction will increase PPC’s customer base by 57%, distribution assets by 40%, and green power generation capacity in operation by 14%. Last but not least, the company strongly relies on the energy interconnection between Greece and Romania via Bulgaria.

“ Enel’s activities in Romania represent the ideal match, in terms of both geography and business, thus strengthening PPC’s footprint in the region. Furthermore, Romania is a strategically important market for us, with access to EU funding through the National Recovery and Resilience Plan (PNRR) and the Modernization Fund, which will complement our development plans in the country. Following the takeover in Romania, PPC strengthens its position in the wider region and becomes a leading player in Southeast Europe”, PPC representatives stated.

With the completion of the transaction between PPC and Enel, the Greek company also acquires all the shares owned by Fondul Proprietatea in E-Distribuție Muntenia S.A. (12%), E-Distribuție Dobrogea S.A. (24.1%), E-Distribuție Banat S.A. (24.1%), Enel Energie Muntenia S.A. (12%) and Enel Energie S.A. (12%) in Romania, for a total amount of 650 million lei (approximately €130 million).

PPC was founded in 1950 and has been Listed on the Athens Stock Exchange since 2001. Leader of the electricity generation and supply market in Greece, the company is active in the entire value chain, from the production of electricity (from both renewable and conventional sources), to its distribution and supply, while also owning a growing business in the field of electric mobility. The group is also present in Bulgaria (since 2015), Albania (since 2016), North Macedonia (following the acquisition of EDS – Energy Distribution Solutions in 2018), to be joined by Romania shortly.

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