Enel Green Power and F2i have reached an agreement for the establishment of a joint venture on photovoltaics.
The agreement provides that EGP will set up a Newco to which it will contribute, through the subsidiary Altomonte FV Srl, 105 MW of photovoltaic assets. For its part, F2i will participate with 105 MW of photovoltaic assets currently held by F2i Solare 1 Srl and F2i Solare 3 Srl, companies controlled by F2i Energie Rinnovabili Srl
230 million will be the enterprise value of Enel Green Power's assets, 285 million euros that of F2ì with an equity value of 88 million euros, net of minorities, and 106 million euros, respectively.
In addition, EGP, in order to guarantee equal shareholdings in the joint venture, will make a cash injection of 18 million euros, to be carried out at the time of the contribution of the shareholding of Altomonte FV Srl
The aim of the agreement is to take advantage of the current consolidation of Italian photovoltaics, implementing aggregations of plants held by financial institutions and private operators. In detail, through the joint venture, EGP expects to reduce management costs, optimize energy management and implement financial leverage in order to seize new financing opportunities in a changed market context characterized by low interest rates.
EGP also has an option right to purchase a further shareholding equal to 2,5% of the joint venture's capital, thus being able to exercise control. Lastly, the agreement provides for the possibility for F2i to confer, by 2016, a further 58 MW, which will be matched by a cash contribution from EGP to keep the equal stakes in the joint venture unchanged.
