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ACCIONA agrees to sell its 25% stake in Endesa to Enel

02/21/2009

ACCIONA exercises its put option ahead of time, as allowed for in the Agreement on Endesa Shares signed in March 2007

The deal is worth 11.107 billion euros, the equivalent of the current value of ACCIONA's put option as allowed for in the March 2007 Agreement

ACCIONA will acquire from Endesa 2,105MW of renewable energy assets, worth 2.89 billion euros

ACCIONA exercises its put option ahead of time, as allowed for in the Agreement on Endesa Shares signed in March 2007.

The deal is worth 11.107 billion euros, the equivalent of the current value of ACCIONA's put option as allowed for in the March 2007 Agreement.

ACCIONA will acquire from Endesa 2,105MW of renewable energy assets, worth 2.89 billion euros.

 ACCIONA has reached an agreement with Enel to sell its 25.01% percent stake in Endesa for 11.107 billion euros, equivalent to the current value of ACCIONA's put option as allowed for in the Agreement on Endesa Shares signed between ACCIONA and the Italian power group in March 2007. This amount will be adjusted upwards with the interest agreed upon in the agreement, and adjusted downwards with the dividends that ACCIONA will receive until the effective execution of the agreement.

Under the terms of the deal, payment will be made entirely in cash with the commitment that ACCIONA will acquire 2,1O5MW of renewable energy generation assets from Endesa, valued at 2.89 billion euros and which are entirely debt-free. The renewable energy assets that ACCIONA will buy have been priced at current market prices by an independent third-party expert using accepted valuation criteria. The operation will go ahead if Endesa obtains at least two fairness opinions from two internationally reputed banks.

The group of Endesa assets to be acquired by ACCIONA is made up of 1,248MW of wind power (1,154MW in Spain and 94MW in Portugal); 175MW of mini hydro; and 682MW of conventional hydro. The conventional hydro assets -located in Spain on the rivers Cinca, Gallego and Aragón- will give ACCIONA access to a new technology with considerable strategic value, owing to the regularity of these assets' energy production, which will offset the fluctuating production levels of wind power. The hundred or so Endesa employees who currently work at the hydro plants affected by the agreement will join ACCIONA with all their employments rights intact.

These assets will consolidate ACCIONA's position as a world-leading player and will place the company as the world's number-two renewable energy provider (it is currently ranked third). In the Spanish market, ACCIONA will become the country's fourth-placed electrical utility, behind Iberdrola, Endesa and Unión Fenosa.

The deal will be officially closed once all the administrative and regulatory procedures to ensure the sale of at least 75% of the affected assets have been carried out, for which a period of six months as of the signature of the agreement has been established.

Under the terms of the agreement, ACCIONA expressly and formally designates Endesa as Preferred Supplier to cover the group's energy needs in Spain and Portugal for the next two years. This means that Endesa can offer to supply ACCIONA gas and electricity services in normal market conditions and at competitive prices.

Similarly, within the framework of cooperation and commercial and technological relations between ACCIONA and Enel, and in benefit of Endesa, ACCIONA and Enel have signed a framework agreement for the supply of wind generators, not exceeding a total production capacity of 400MW, and in normal market conditions.

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