Italian energy majors vying for Terra Firma’s solar platform RTR - report

Solar panels in Italy. Photo by: Rete Rinnovabile Srl (www.rtrenergy.it).

May 7 (Renewables Now) - Italy’s Enel SpA (BIT:ENEL), asset manager F2i SGR and energy group ERG SpA (BIT:ERG) are all competing in an auction for the acquisition of Italian solar power producer RTR Rete Rinnovabile and its 334-MW portfolio, Reuters reports, citing unnamed sources.

RTR is owned by UK-based private equity group Terra Firma Capital Partners Ltd, which, according to the sources in the know, intends to shortlist a group of final bidders in the middle of this month and close the sale of RTR this summer. At least six bidders, mostly domestic players, have submitted tentative offers.

RTR owns 134 solar parks in Italy with a combined capacity of 334 MW. The company could be worth up to EUR 1.5 billion (USD 1.79bn), Reuters said, adding that contenders for its acquisition are independent solar power producer Sonnedix, a tie-up between Enel and F2i, utility A2A SpA (BIT:A2A) and energy group ERG, which have launched separate proposals. A consortium between Abu Dhabi’s Masdar Clean Tech Fund and Italian investment firm Tages has also submitted a non-binding offer. Canada's Alberta Investment Management Corp (AIMCo) is among the international bidders for RTR, too.

According to one of the people familiar with the matter, Terra Firma has inked non-disclosure agreements with 80 to 90 possible suitors. Another two insiders told the news agency that Japan’s Mitsui & Co (TYO:8031) was also interested in the transaction, while it was not clear whether it has made a proposal.

In 2017, RTR recorded core earnings of about EUR 134 million. The business has accumulated debt of around EUR 900 million.

(EUR 1.0 = USD 1.195)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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