On 17.03.2010 MYTILINEOS HOLDINGS S.A. and ENDESA S.A. have reached an agreement for the acquisition of 50.01% of the share capital held by ENDESA S.A. in the joint company ENDESA HELLAS PRODUCTION AND TRADE OF ELECTRICAL POWER S.A.
The total price to be paid by MYTILINEOS HOLDINGS S.A. for the acquisition of 50.01% of ENDESA HELLAS amounts to €140 million, and will be paid in instalments scheduled until 1 July 2012. At the same time, ENDESA S.A. will acquire one wind park and three hydropower plants with a total installed power generation capacity of around 14 MW, which belong to the ENDESA HELLAS portfolio, for a price of €20 million. Upon completion of the above procedure, MYTILINEOS HOLDINGS S.A. will become the sole shareholder of ENDESA HELLAS, with 100% of the company's share capital in its possession.
The reversal of the situation, initially by the acquisition of Endesa by Enel and Acciona, but also by the change of strategy of Enel (which holds a 92% stake in Endesa) which, in order to reduce its levels of borrowing decided to sell regional European assets, led the Italians to disinvest from Endesa Hellas. The aforementioned agreement increases the visibility of the Group's plans and allows it to proceed quickly with its plans concerning the production of electrical power.
The above development confirms the commitment of MYTILINEOS HOLDINGS S.A. to its overall business planning in the energy sector, and is one more step towards the creation of the largest private energy producer in Greece, with a portfolio comprising 1.2 GW from thermal stations in trial operation and/or construction stages, coupled with RES projects representing a total installed capacity of 35 MW in operation and 1.4 GW in various stages of development.
The Group's ambitious investment plan is proceeding at a quick pace, as its second facility, a 444 MW combined cycle power station in Agios Nikolaos, is now in an advanced construction stage. Construction of the Group's third facility, a 437 MW power station in Ag. Theodori, is already under way in collaboration with MOTOR OIL.
All the above activities help bring closer the Group's goal of an installed operational capacity of more than 1,800 MW by 2013, which will allow the Group to make a significant contribution towards a solution to the problem of deficits in the power supply system and to help reduce electricity imports which are expensive for Greece.
Finally, MYTILINEOS HOLDINGS S.A., in collaboration with MOTORL OIL, remains committed to the efforts towards liberalisation of the market for natural gas. Developments in the global market for energy and natural gas are shaping a range of options regarding the methods and terms for the supply of natural gas by third parties, in addition to the Public Gas Corporation (DEPA).
It should be noted than in March 2010 the Ministry for the Environment, Energy & Climate Change approved the Administration Regulation of the National Natural Gas System (NNGS), which lays down the rules that will govern access to the national pipeline system of all suppliers and/or consumers of natural gas wishing to cover their needs by selecting a third-party domestic or foreign supplier. This development provides MYTILINEOS HOLDINGS S.A. with the desired flexibility regarding the design and implementation of its strategy regarding the supply of natural gas, so that it may further improve the efficiency of its natural gas fired thermal power stations.