111 municipalities in the province of Milano and 18 municipalities in the province of Brescia managed by e-distribuzione will be managed by a new industrial entity. The electricity market is moving. e-distribuzione has signed an agreement with A2A for the 90% sale of the share capital of a NewCo to which the electricity distribution activities in the municipalities of the Milan area and the province of Brescia will be transferred. The consideration was 1,2 billion euros.
The aim of the operation is to rationalize the network management system in the two provinces and is ultimately part of the 2024-2026 Strategic Plan. The ambitious plan envisages approximately 12,2 billion euros of investments over the three-year period for the networks in Italy "for the benefit of the 31 million end users that e-distribuzione will continue to serve after the closing" in Lombardy. Currently the Municipalities in the portfolio companies are 7.300 throughout the national territory.
In the new company e-distribuzione will maintain a 10% stake in the share capital useful for the phase start-up, but after the first year there are buy and sell options (put e call document). The conclusion of the operation will take place by 31 December 2024, after some essential steps: the release of the Antitrust authorization, the green light regarding golden power by the Presidency of the Council of Ministers, obtaining the transfer of the electricity distribution service concessions in favor of NewCo.
Reorganization and new industrial opportunities
In the meantime, other opportunities may also arise in the electricity market. If they occur, they could lead to the definition of further activities that e-distribuzione can carry out on behalf of the new company. Enel explains that they will be reported in specific agreements but can also "configure a model of Stewardship industrial". There are no limits from this point of view and if the opportunities are fruitful, the economic effects could be seen on the Group's ordinary results.
The agreements between the two companies do not end here. A contract was also signed with A2A Memorandum of Understanding (“MoU”), non-binding, for the possible acquisition by e-distribuzione of activities held by A2A, outside the provinces of Milan and Brescia. Operations that design the reorganization of the distribution system after the opening of the free market.
