Sawiris acquires Wind in largest ev

Italian utility group Enel SpA has agreed to sell 62.75% of its Wind SpA telecoms unit to the Egyptian-led Weather Investments consortium. The transaction values Wind at E12.13bn. The deal is split in two phases: by August, Enel will sell its 62.75% of Wind for E2.98bn, which will allow Enel to remove E7bn of the telecom unit's debt from its balance sheet. Then, in the first half of 2006, Enel has the option to sell its remaining 37.25% stake to Weather for E328m in cash and shares. The option can be exercised between January 15 and June 30. After the second phase of the deal, Enel will hold a 26% stake in Weather, which will own 100% of Wind and 50% plus one share of Orascom Telecom Holding. Enel has valued this stake at E1.96bn. Wind runs a fixed-line telecom network and is Italy's third-largest wireless operator after Telecom Italia Mobile and Vodafone Group. Weather Investments is backed by Naguib Sawiris, chief executive of Egyptian telecommunications company Orascom Telecom, as well as French private investment group IPE and US buyout investor Wilbur Ross.

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