REG-International Endesa Acquisition <Origin Href="QuoteRef">ELE.MC</Origin>

Endesa SAAnnouncement

20/12/2016 10:55

      Acquisition    
    
      Endesa, S.A. with registered office in Madrid, C / Ribera del       Loira, 60. Registered in the Madrid Mercantile Registry in sheet M-6405,       volume 323, page 1. Tax ID n: A28023430    
      Borja Acha Besga
Secretary to the Board of Directors    
      Madrid 20 December 2016    
      In accordance with the provisions of article 228 of the Spanish       Securities Markets Act Endesa, S.A. hereby publishes the following    
      SIGNIFICANT EVENT    
      Endesa, S.A., via its fully-owned subsidiary Endesa Servicios, S.L., has       reached agreement with the Enel Iberoamrica S.L. company to acquire the       systems and telecommunications business relating to Endesa's sphere of       activity for a price of Euro 246 million.    
      This decision was approved by the Board of Directors of Endesa S.A. on       the basis of a favourable report from the Audit and Compliance       Committee. This Committee, in the discharge of its duties, used a       fairness opinion of the reasonableness of the price issued by a renowned       financial institution.    
      The transaction is being entirely financed with debt and available cash       and contributes to the aim of streamlining the company's capital       structure.    
      This transaction entails a reorganisation of systems and       telecommunications support activities. These activities are being       internalised with the aim of making them more adaptable to the needs of       Endesa's corporate perimeter, simplifying internal and administrative       management procedures. This improved efficiency will be attained within       a context of functional rationalisation and therefore of cost       optimisation. These activities are based on the ongoing development of       specialist technical capabilities, with Endesa's key objective being to       possess the necessary means to continue to develop innovative       initiatives in a context of growing digitalisation.    
      The transaction is expected to be completed by 31 December 2016.    
      Secretary to the Board of Directors    
    
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      International Endesa