Mergers
Milan , November 18, 2015 – 10:28
The Enel approved the merger of the subsidiary Enel Green Power to make it the” engine “the future development of the group, which will focus on renewable energy and new technologies of distribution” smart “electricity. In most reviews the strategic plan announced last March by CEO Francesco Starace, raising the bar of the objectives. A few hints, during the presentation, to the question “broadband”, which is not included in the strategic plan. The main messages of the transactions announced today:
The integration of Enel Green Power
financial operation very technical, which will take place with the mechanism of “non-proportional demerger”. In essence the Italian operations will remain in EGP spa, which will become wholly owned by Enel and exit the stock market. Foreign ownership will be assigned to Enel and the current shareholders will receive shares of EGP new Enel with an exchange ratio of 0.486 Enel each title EGP. Enel will issue 770 million new titles for the minority shareholders. Assemblies for approval will take place on 11 January 2016. After the split the Ministry of Economy, in the absence of recesses, will drop to 23.5% stake from 25.5% today.
The objectives
Enel Green Power will become more, investment in renewables will benefit (be more than 50% of new investments in the electricity group), you will be able to seize new opportunities integration with networks and the retail market. The withdrawal and the condition precedent Shareholders EGP may exercise the right of withdrawal. Enel about it reserves a condition precedent: it will have to shell out more than 300 million Euros for the recesses will reverse. The new plan with a new plan Starace intends to accelerate, he says, on “value creation”. Meanwhile they are updated efficiency targets, aiming for savings of 1.8 billion in the 2014-2019 period. Then the aim is to reduce the time of creation of the margins, which will rise from EUR 6.7 billion previously expected 7.2 billion in the period 2015-2019. Enel wants to make more investments (2.7 billion more) and also intends to do more assignments: it aimed to 5 billion, now brought to 6 billion.
Dividends confirmed
It does not change the Dividend policy: minimum of 0.16 euro per share for 2015, 0.18 for 2016. A payout ratio (dividend / earnings) of 65% in 2018. Broadband Although having it defined a ” key opportunity for new business “Starace gave no details of what Enel is expected in this area. He confirmed that the new company just announced will be open to all, telecom operators and content providers. But he ruled the broadband sector from the objectives of his plan, is “in terms of investment and operating margins.” Discuss this issue again with the next plan 2016. In foreign countries where Enel is present, however, it could propose the use of its power grid to achieve a ‘fiber-optic infrastructure. In general, he said Starace, Enel “the benefits in terms of costs are such that we do not see any competitor able to reach our potential connection”.
Work on the staff
Nell ‘arch plan Enel will carry out 2,000 new hires in Italy compared to 6,000 early retirements. In the world the new hires will be 4,500 while 9,200 early retirements. The global workforce will fall by 14% between 2014 and 2019.
Securities weak stock exchange
The stock market, mid-morning, reacted to the news with the store: Enel shares fell 3% and that of Enel Green Power 2.9%, in line to Price of withdrawal.
November 18, 2015 (modified November 18, 2015 | 11:38)
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