Under the terms of the 50/50 joint venture deal, each of the two firms will contribute 105MW of PV assets in Italy to the new entity.
In particular, EGP, through its subsidiary Altomonte FV, will contribute 105MW of PV assets to the JV. F2i will also contribute additional 105MW of PV assets which are currently held by F2i Solare 1 and F2i Solare 3, subsidiaries of F2i Energie Rinnovabili.
The deal comes in line with Enel Green Power Group’s effort to optimize its portfolio and also a part of its 2015-2019 strategic plan.
The enterprise value and equity value of EGP assets is €230m and €88m net of minorities respectively and that of F2i assets’ is €285m and €106m respectively.
EGP also plans to invest €18m to guarantee equal shareholdings in the joint venture.
The joint venture intends to combine the operating PV solar plants owned by different financial institutions and private operators in the country.
Enel expects the new entity to reduce operating expenses by implementing the programs for existing PV plants, optimize energy management with the proactive management of EGP’s assets as well as optimize debt to seize new financing opportunities in a new market environment of low interest rates.
Furthermore, EGP will have provision to acquire an additional 2.5% of controlling stake in the joint venture.
Subject to the approval of the EU antitrust authority and other standard conditions precedent, the transaction is planned to be completed by the end of this year.
