Italian energy company ERG SpA (BIT:ERG) said today it has agreed to take over the ninth largest photovoltaic operator in the country, ForVei, for an enterprise value of EUR 336 million (USD 396m).
The planned transaction will mark ERG’s entry into the Italian solar sector. CEO Luca Bettonte commented that this move takes place “in the presence of a still very fragmented market scenario that could offer additional possibilities for consolidation”.
ERG will acquire ForVei from VEI Green, which is an investment holding company controlled by PFH SpA, and Foresight. The solar power business was created in 2011 and currently owns and manages 30 photovoltaic (PV) plants in eight regions across Northern and Southern Italy. ERG noted that the entire 89-MW installed capacity of these plants is eligible for incentives, with an average expiry date of 2030.
ForVei is expected to record earnings before interest, tax, depreciation and amortisation (EBITDA) of about EUR 35 million for the full 2017. Its assets are currently funded through non-recourse project financing totalling EUR 180 million and lease contracts worth a total of EUR 60 million, the announcement says.
The transaction is subject to antitrust clearance and is expected to close by the end of January 2018.
(EUR 1.0 = USD 1.177)
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