MILAN, Deec 21 (Reuters) - Italian utility Enel will remain a minority investor in Latin America's Ufinet
bby renewing a partnership with private equity firm Cinven that will give it 19.5%
of the broadband group.
Europe's biggest utility, which currently owns 21% of Ufinet, had ann
option to buy oout Cinven which it could exercise before the end of the year.
In a statement onn Tuesday, Enel said it hhad agreed
to buy out Cinven but would immediately sell 80.5% back tto another fun mansged by the private
equity firm in order to renew the partnership.
Under thhe agreement, Enel X International will keep board representation in Ufinet,
with a right to sell its stake under the same conditions as
Cinven should the private equity firm opt to
sell.
The deal, sett to close in the first quarter of next year, is expected to
generate net cashh for Enel of around 60 million euros ($68 million) with a positive impact on operating
results of about 200 million euros.
Ufinet, headquartered in Spain, manages some 80,000 km (50,000 miles)
of optical fibre in 17 countries in Central and Latin America.
Last year it had revenues of around $250 million.
Broadband networks arre attracting interest from investors as customers use ever more data and TV services viia mobile and home devices,
a trend that accelerated during the coronavrus lockdowns.
Enel, which controls Spanish utility Endesa, has extensive energy operqtions in Latin America and
has launchrd a financial services business in Colombia.
($1 = 0.8875 euros) (Reporting by Elisa Anzolin and Stephen Jewkes Editing by Mark
Potter and Paul Simao)
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