EPH and ENEL sign definitive agreement for the sale of ENEL´s stake in SLOVENSKÉ ELEKTRÁRNE

18. 12. 2015

Energetický a průmyslový holding, a.s. (“EPH”) announces that its subsidiary EP Slovakia BV (“EP Slovakia”) today signed a contract with the company Enel Produzione S.p.A. (“Enel Produzione”), a subsidiary of Enel S.p.A., for the sale of the stake held by Enel Produzione in Slovenské elektrárne, a.s. (“Slovenské elektrárne”), equal to 66% of the latter’s share capital.

The sale will be executed by way of a transfer of Enel Produzione’s entire stake in Slovenské elektrárne to a newly established company (“HoldCo”), and the eventual sale to EP Slovakia of 100% of the share capital of the HoldCo. This sale of HoldCo to EP Slovakia is due to be implemented in two phases.

1. In the first phase, Enel Produzione will sell 50% of the HoldCo’s share capital to EP Slovakia for 375 million euros, of which 150 million euros will be paid upon the closing of the first phase, and 225 million euros will be paid upon the closing of the second phase. The amount could vary subject to the application of the adjustment mechanism, as described below.

2. In the second phase, a put or a call option can be exercised respectively by Enel Produzione or by EP Slovakia, exercisable 12 months after receiving the Trial Operation Permit of units 3 and 4 of the Mochovce nuclear power plant, which are currently under construction. Upon exercise of either option, Enel Produzione would transfer the remaining 50% of the HoldCo’s share capital to EP Slovakia for 375 million euros. Payment will be due at the time of the closing of the sale and the consideration is subject to the application of the adjustment mechanism described below. The closing of the second phase is subject to obtaining the Final Operation Permit for Mochovce’s units 3 and 4.

The total consideration payable over the two phases, equal to 750 million euros, is subject to an adjustment mechanism. Any adjustment will be calculated by independent experts and applied upon completion of the second phase on the basis of a set of parameters, including the evolution of the net financial position of Slovenské elektrárne, developments in energy prices in the Slovak market, operating efficiency levels at Slovenské elektrárne as measured against benchmarks specified in the agreement, and the enterprise value of units 3 and 4 of Mochovce.

The transaction is also subject to clearance from the European Union’s antitrust authorities.