European energy utility Enel has filed its intention with the Italian stock exchange to list its green energy division, becoming one of a handful of major renewable energy initial public offerings chalked for 2010.
The company plans to spin-off its Enel Green Power (EGP) unit on Borsa Italiana and has also reserved the option to request the listing of EGP’s shares on other stock markets and has cited Spain as a particular exchange in focus.
Enel also said that, in the meantime, it will continue to consider agreements with long-term investors for the sale of a minority stake in EGP, to be carried out with or, crucially, an alternative to the public offering.
In a flash note originally made to Borsa Italiana in March and resubmitted on 17 June by research company Kepler Research, it said Enel still pencils in a five-year Capex equaling 80 per cent of its market cap.
Kepler said that even with its ambitious guidance, EBITDA growth remains low-single digit.
‘While we see Enel’s 2010 to 2012 business plan taking onboard the necessary prudence to model power generation performanes in the first years of the plan (say, 2010 and 2011), the exit targets still seem to be factoring in a more optimistic view than ours,’ the note said.
In April, Enel told Reuters it was sending letters to banks to invite them to participate in a consortium for the listing, having originally planned to float the business in June which was then pushed back to September.
Most recently EGP has launched an 84MW hydroelectric project in Guatemala and doubled its wind capacity in Bulgaria as it further increases its international footprint.
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