UPDATE 2-Debt-laden Enel could cut Endesa stake in shake-up

jueves 31 de julio de 2014 07:36 GYT

* Latam shakeup to simplify control chain, cash flows

* Could add 70-80 mln euros to Enel net income

* Transaction is no panacea for group's debt - analyst (Recasts lead, adds manager comments)

By Stephen Jewkes

MILAN, July 31 (Reuters) - Europe's most indebted utility, Enel, plans to simplify its operations in Spain and Latin America to ensure more cash flows into its coffers, and may reduce its stake in Spanish unit Endesa as a result.

The reorganisation is focused on stripping out Endesa's Latin American assets to give Enel more direct control over them as it tries to reduce debts that stood at 43.1 billion euros ($57.7 billion) at the end of June, up 8.5 percent from the end of December.

"The reorganisation is to reduce complexity and also increase the focus on growth areas," Enel Chief Executive Francesco Starace said on a conference call on first-half results.

Under the plan, Enel will buy from Endesa a 60.62 percent stake in Enersis, the parent company for the group's Latin America operations. Endesa will then pay a special dividend to its shareholders equal to at least the value of the sale.

"We have not decided what to do with Endesa after the operation... One of the options we have is to sell further Endesa shares," Starace said.   Continuación...