Kretinsky’s EPH to Buy Enel’s Stake in Main Slovak Power Utility

(Bloomberg) — Czech billionaire Daniel Kretinsky’s industrial holding agreed to buy Enel’s stake in Slovenske Elektrarne, Slovakia’s main energy utility that also owns nuclear power plants.

Kretinsky’s Energeticky a Prumyslovy Holding AS will acquire the remaining 50% stake in Slovak Power Holding BV from Enel Produzione SpA, exercising an early call option. The deal, which puts a 66% stake in Slovenske Elektrarne into EPH’s hands, is expected to close in the first half of next year and is subject to regulatory approvals. 

As part of the agreement, EPH will guarantee the repayment of credit facilities provided by Enel to Slovenske Elektrarne prior to the transaction closing. These were worth up to €970 million, along with unpaid accrued interest of €158 million, the company said in an emailed statement late Wednesday.

“Slovenske Elektrarne perfectly complement EPH’s generation portfolio, being a zero-emission electricity producer,” said Jan Springl, a member of EPH’s board of directors. “Our priority now is completing the fourth unit of the Mochovce nuclear power plant.”

Kretinsky’s company acquired the initial 50% in SPH from Enel in 2016. Total price for the acquisition of 100% of SPH was €150 million, already paid by EPH during the completion of the first phase of the sale, according to the statement.

Slovenske Elektrarne is Slovakia’s biggest power producer that generates electricity solely from nuclear, hydro and solar power plants. The announcement comes just days after UK government approved Kretinsky’s £3.6 billion ($4.6 billion) takeover of the Royal Mail’s parent company. 

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