Enel to Buy Stake Fiber-Optic Operator for EUR150 Million
June 25 2018 - 2:36AM
Dow Jones News
By Nathan Allen
Enel SpA (ENEL.MI) said Monday that its Enel X subsidiary will
buy a roughly 21% stake in fiber-optic-network operator Ufinet
International from a fund managed by the Cinven Group Ltd. for 150
million euros ($174.8 million).
The Sixth Cinven Fund will hold the remaining 79% of Ufinet's
equity, Enel said.
Under the terms of the deal Enel X can exercise a call option to
buy the rest of Ufinet between Dec. 31, 2020 and Dec. 31, 2021. If
Enel X exercises the call option it will pay between EUR1.32
billion and EUR2.10 billion depending on business performance, Enel
said.
Enel X and Sixth Cinven will have joint control over Ufinet,
with both companies holding 50% voting rights in the network
operator, Enel said.
Ufinet operates fiber-optic networks across 14 countries in
Latin America and posted revenue of EUR159 million in 2017,
according to Enel.
Enel said it would finance the transaction with its own funds
and expects the deal to close in July.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
June 25, 2018 02:21 ET (06:21 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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