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Enel officials announced the completion of the transaction by which the Romanian state has received EUR 401 million. The amount represents the takeover of 13.5% of the former Electrica Muntenia Sud.
Enel had to pay the Romanian state the amount of EUR 401 million following a decision of the International Court of Arbitration in Paris made in February, according to Economica.net.
Enel and the Romanian state, represented by SAPE (the Society for Energy Ownership Management) had a lawsuit regarding a provision in the privatization contract of Electrica Muntenia Sud, the largest electricity distribution company, sold to the Italian company in 2007. The state requested the Italian company the amount of EUR 500 million for 13.57% of the shares, according to the privatisation contract.
Initially, Enel wanted to terminate the conflict before it reached the international arbitration, and had offered the state EUR 250 million. The Energy Ministry, led at the time by Răzvan Nicolescu, did not agree, and steps were initiated in 2014 according to the law against the Italian company. The state demanded EUR 520 million in court.
After the Court’s decision, Enel said it will not challenge the decision and will pay the Romanian state all the money in one instalment.
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