SANTIAGO, Nov 14 (Reuters) - The funds that Italian utility Enel will raise from selling shares of its Spanish subsidiary, Endesa, will mostly go to paying off debt, with some also earmarked for its Latin American operations, Enel’s chief executive said on Thursday.
“All the resources will go to reduce the debt, which we are going to do, and then growth,” said CEO Francesco Starace to journalists in the Chilean capital of Santiago.
“And the growth will be here, I don’t think we’ll be putting more money, much money in growth in Europe because there is not much sense in that,” he said.
Enel, Europe’s most indebted utility, is looking to focus investment on fast-growing Latin American markets, having taken greater direct control of its assets in the region this year.
It wants to reduce its massive debt and has said it could raise up to 3.1 billion euros with the flotation of up to 22 percent of Endesa. On Tuesday, it raised its forecast for net debt at year-end to between 39 billion and 40 billion euros, from a previous estimate of 37 billion euros.
It is also selling assets in Slovakia and Romania.
“We have a plan of divestments in Slovakia and Romania which is well in progress. I think at the end of this year we are going to have the final offers to decide which assets we are going to sell,” Starace said. (Reporting by Rosalba O‘Brien and Antonio de la Jara; Editing by Steve Orlofsky)