NEW YORK, NY, Nov. 14, 2002 — Endesa’s Board of Directors has ratified the sale of its mainland transmission assets in Spain to REE.
The transaction includes the assets in operation, the assets to come on line before year-end 2002 and the work in progress to be operating in 2003.
Moreover ENDESA will assume the operation and maintenance of the network for three years and will provide technical support to REE in the fourth year.
The total amount of the transaction is Euro 1,052 Mn, Euro 950 Mn corresponding to the sale of the transmission assets and Euro 102 Mn to the Operating and Maintenance contract mentioned above. Endesa’s gross capital gain will be Euro 400 Mn approximately.
The sale requires the relevant permits and will have effect during the first quarter 2003.
Assets included in the agreement
Endesa’s mainland transmission assets included in the agreement amount to 5,858 Km of circuits, 3,449 MVA of transforming capacity, 701 bus bar connections and 134 sub-stations. These assets are located in four Spanish regions: Catalonia, Andalusia, Aragon and Galicia.
Explicitly excluded from the transaction are the switching centers, the controlling systems of the company and the international connections of 66 kV and 15 kV.
In general terms, the sale does not include the real estate properties of the land affected by the sale, except for those devoted to the transmission activities in which Endesa will maintain the exclusive right of the urban use and their residual value.
Other aspects of the agreement
For a period of 99 years Endesa will maintain the right of use and exploitation of the fiber optic installed in the electricity lines sold. Furthermore, Endesa and REE will share the right to lay new fiber optic over these lines.
Independently from this sale, Endesa will maintain its right to carry out electricity transmission activities in the Spanish mainland system.