By Liam Moloney
Enel SpA (ENEL.MI), Italy's biggest utility that built up its
debt after taking over a Spanish rival, Friday said Endesa SA
(ELE.MC) agreed to sell an asset that will allow it further reduce
its debt burden.
Enel's Endesa agreed to sell the remaining 20% stake in gas
transportation and distribution firm Endesa Gas T&D SL to two
funds managed by Goldman Sachs Group Inc. (GS) for 130 million
euros ($174.2 million), said the Spanish utility. The transaction
will take place by the end of the year.
"The EUR130 million from this disposal, once cashed in, will be
fully dedicated to the reduction of Enel net debt," said an Enel
spokeswoman.
"The transaction announced today represents a step further to
fulfill our EUR6 billion disposal programme to be completed by the
end of 2014," she added.
Enel turned into Europe's most indebted utility after taking
over Endesa in 2007. Since then it has focused on reducing the debt
level.
Thursday, Enel reported net debt at the end of September dropped
to EUR43.99 billion from EUR44.52 billion as part of its
third-quarter results. Chief Executive Fulvio Conti said the
Rome-based utility expects net debt for the end of 2013 to be lower
than the EUR42 billion it had earlier forecast.
Write to Liam Moloney at liam.moloney@wsj.com
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