Enel Americas signs agreement in Peru to sell distribution and advanced services businesses

Published on Friday, 7 April 2023

Santiago, April 7,  2023 – Enel Américas, through its subsidiary Enel Perú, has signed an agreement with China Southern Power Grid International (CSGI) to sell all of Enel Perú's shareholdings within the energy distribution and supply company Enel Distribución Perú S.A.A. and Enel X Perú S.A.C., a company dedicated to providing advanced energy services.

"As announced in our 2023-2025 Strategic Plan, our company focuses on concentrating our efforts in those countries where regulatory frameworks support a clear, orderly, and accelerated energy transition. This transaction perfectly aligns with our strategy, allowing us to continue working on maximizing the value of our investments in the countries where we operate. I am grateful for the work and commitment of all Enel employees in Peru who allowed us to invest in renewables, grid digitalization, and electrification of final consumption to add value to these assets of Enel Américas", said Maurizio Bezzeccheri, Enel Américas general manager.

The agreement establishes that CSGI will acquire the equity interest held by Enel Peru in Enel Distribución Perú (equivalent to 83.15% of the share capital) and Enel X Perú (equal to 100% of the share capital) for a total consideration of around US$2.9 billion, equivalent to a total enterprise value of around US$4 billion (on a 100% basis). In addition, the entire consideration will incorporate customary adjustments for this type of transaction, considering the time between signing and closing.

The sale closing is subject to certain conditions precedent customary for this type of transaction, including approval from the competent Peruvian antitrust authority (INDECOPI) and Chinese authorities for outbound direct investments (ODI).