(Adds background on Enel's asset sale plan, stock price)
By Marco Aquino
LIMA, Feb 24 (Reuters) - The Peruvian unit of Italy's
biggest power utility, Enel , said on Friday that
state-owned China Southern Power Grid is carrying out "due
diligence" on the local unit for a possible purchase offer on
its energy distribution operations.
Bloomberg reported earlier on Friday that the Chinese firm
is weighing a possible bid for Enel's distribution business in
Peru, which it said could be valued at some $3 billion.
Enel's local unit said in a statement, however, that it has
no information about the status of talks or the possible amount
of the "eventual transaction."
Due diligence often refers to a legally required appraisal
of a business by a potential purchaser geared toward better
understanding all assets and liabilities.
In recent years, Chinese companies have shown growing
interest in Latin American commodities, including energy sector
investments.
The Guangzhou-based power company's owner, state-owned
Assets Supervision and Administration Commission of the State
Council (SASAC), did not immediately respond to a request for
comment.
In November, Enel announced an asset sale plan worth 21
billion euros ($22 billion) to be completed by 2025 with the aim
of cutting debt while focusing on six markets in Europe and the
Americas.
Part of that announcement included the plan to put up for
sale Enel Peru's distribution and generation assets, which the
state-controlled firm said was already under way at the time.
Enel is also exiting Argentina and reducing its presence
in Brasil after scaling back in Chile last year.
The Italian energy giant considers Spain, the United States,
Brazil, Chile and Colombia as its core countries, in addition to
its home market.
On Friday, shares of Enel Distribucion Peru rose 25% on
Lima's main stock exchange.
($1 = 0.9479 euros)
(Reporting by Marco Aquino in Lima; Additional reporting by
Francesca Landini in Milan and Valentine Hilaire in Mexico City;
Editing by David Alire Garcia and Alistair Bell)
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