Edison seeks to take over mini HPPs operator Frendy Energy in Italy

Italian electricity and natural gas producer Edison SpA (BIT:EDN) plans to take over Frendy Energy SpA (BIT:FDE), the owner and operator of 15 mini hydropower plants (HPPs) in Italy.

Edison said on Monday it has inked a deal to acquire a stake of 45.039% in Frendy Energy from Cryn Finance and an unnamed minority stockholder at a price of EUR 0.34 a share. The bid values the target at about EUR 20.2 million (USD 23.3m) based on roughly 59.3 million shares.

The buyer noted that the above-mentioned purchase price could be reduced depending on Frendy’s actual net financial position as at June 30, 2017.

At the same time, Edison intends to buy shares from third parties in order to build a controlling stake of not less than 50.01%. The plan is to make a compulsory takeover bid for all the Frendy shares after the acquisition of the majority interest.

The closing of the transaction is scheduled for October 2017.

Frendy Energy is engaged in the development, construction and management of mini-hydro power plants. Currently it owns 15 mini HPPs, including three that are at an advanced stage of construction. The plants are mainly situated on irrigation channels in Piedmont and Lombardy. They produce a total of 20 GWh of electricity annually.

Edison itself owns and operates 37 mini HPPs totalling 70 MW and also has 1,080 MW of large hydroelectric facilities. Late last month the company inaugurated a new mini hydropower station on the River Adda, in Pizzighettone.

(EUR 1.0 = USD 1.153)

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