By Nathan Allen

Enel SpA (ENEL.MI) said Monday that its Enel X subsidiary will buy a roughly 21% stake in fiber-optic-network operator Ufinet International from a fund managed by the Cinven Group Ltd. for 150 million euros ($174.8 million).

The Sixth Cinven Fund will hold the remaining 79% of Ufinet's equity, Enel said.

Under the terms of the deal Enel X can exercise a call option to buy the rest of Ufinet between Dec. 31, 2020 and Dec. 31, 2021. If Enel X exercises the call option it will pay between EUR1.32 billion and EUR2.10 billion depending on business performance, Enel said.

Enel X and Sixth Cinven will have joint control over Ufinet, with both companies holding 50% voting rights in the network operator, Enel said.

Ufinet operates fiber-optic networks across 14 countries in Latin America and posted revenue of EUR159 million in 2017, according to Enel.

Enel said it would finance the transaction with its own funds and expects the deal to close in July.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

June 25, 2018 02:21 ET (06:21 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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