Spain’s Endesa gets go-ahead to take 65% in French producer SNET
Endesa, Spain’s biggest power producer, has finally been given clearance by the French government to take an extra 35% in domestic power producer SNET, the French generator said on Tuesday. This rings Endesa’s holding in SNET up to 65%. The first tranche of 30% was bought by the Spanish company for around EUR 450 million. The second share of 35% is reportedly changing hands for around EUR 121 million. Endesa’s original offer for the 35% included a cash component of around EUR 3 million, which France’s Commission des Participations et des Transferts (formerly the privatisation committee) rejected, a SNET spokesman said on Tuesday. The final offer reportedly contains a cash component of around EUR 40 million.
Endesa has bought its 65% from state-owned Charbonnages de France. The remaining 35% is currently in the hands of Charbonnages de France (16%) and state-owned Electricite de France (19%). The two smaller shareholders are in exclusive negotiations with stateowned gas incumbent Gaz de France to sell the remaining 35%. SNET said on Tuesday that it can give no indication at present as to when the GdF deal may take place and it is waiting for the arrival of its new c.e.o. from Madrid. However, EdF is required by European Competition law to relinquish the stake in its main competitor on the domestic market.
SNET has four thermal power plants in France with installed capacity of 2,474 MW. These plants produced a total 9,482 GWh in 2003, 5,633 GWh of which was sold directly to eligible customers in France. SNET also has a long-standing obligation with EdF to provide peak production to the grid when necessary. This gives SNET a guaranteed cash flow of EUR 200 million per year, a spokesman for the generator said. The contract, which was originally due to last until 2019, was shortened to end in 2009 by a French Council of State judgement based on the 2000 liberalisation law.
SNET also operates a combined heat and power (CHP) plant in Poland and owns 50% of the Turkish producer Altek. LB
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