Italy’s Enel Green Power SpA (BIT:EGPW) and F2i SGR SpA will form a 50/50 joint venture to hold 210 MW of operating photovoltaic (PV) plants with a combined enterprise value (EV) of EUR 515 million (USD 586m).
Enel Green said in a statement on Friday that each firm will contribute 105 MW of Italian PV assets to a new entity, the goal of which will be to take advantage of the consolidation currently underway in the local PV market.
The assets that will be transferred to the JV by Enel Green have an EV of EUR 230 million and an equity value of EUR 88 million, net of minorities. On its part, F2i will contribute plants with EV of EUR 285 million and an equity value of EUR 106 million.
Enel Green will need to pay EUR 18 million in cash in order to guarantee equal shareholdings in the JV. The company will receive an option to buy an additional 2.5% stake in the new firm. It will also need to make an additional payment in the future, if F2i makes use of its own right to contribute a further 58 MW of PV capacity.
The transaction is expected to be wrapped up by the end of the year, subject to regulatory clearance. It will positively impact Enel Green’s net financial debt by EUR 121 million, the firm estimates.
(EUR 1.0 = USD 1.137)
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