20th Dec 2016 10:55
Endesa, S.A. with registered office in Madrid, C / Ribera del Loira, 60. Registered in the Madrid Mercantile Registry in sheet M-6405, volume 323, page 1. Tax ID nº: A28023430
Borja Acha BesgaSecretary to the Board of Directors
Madrid 20 December 2016
In accordance with the provisions of article 228 of the Spanish Securities Markets Act Endesa, S.A. hereby publishes the following
SIGNIFICANT EVENT
Endesa, S.A., via its fully-owned subsidiary Endesa Servicios, S.L., has reached agreement with the Enel Iberoamérica S.L. company to acquire the systems and telecommunications business relating to Endesa's sphere of activity for a price of Euro 246 million.
This decision was approved by the Board of Directors of Endesa S.A. on the basis of a favourable report from the Audit and Compliance Committee. This Committee, in the discharge of its duties, used a fairness opinion of the reasonableness of the price issued by a renowned financial institution.
The transaction is being entirely financed with debt and available cash and contributes to the aim of streamlining the company's capital structure.
This transaction entails a reorganisation of systems and telecommunications support activities. These activities are being internalised with the aim of making them more adaptable to the needs of Endesa's corporate perimeter, simplifying internal and administrative management procedures. This improved efficiency will be attained within a context of functional rationalisation and therefore of cost optimisation. These activities are based on the ongoing development of specialist technical capabilities, with Endesa's key objective being to possess the necessary means to continue to develop innovative initiatives in a context of growing digitalisation.
The transaction is expected to be completed by 31 December 2016.
Secretary to the Board of Directors
View source version on businesswire.com: http://www.businesswire.com/news/home/20161220005468/en/
Copyright Business Wire 2016
Related Shares:
Endesa Ord