A step forward for the acquisition of Metroweb by Enel. The electricity group announced late Monday that it had signed the binding agreements relating to the operation aimed at integrating the subsidiary Enel OpEn Fiber and the group headed by Metroweb Italia. It is the first of the many steps that will lead to the merger which will create a newco jointly held by Enel and Cdp Equity. The option granted to F2i to reinvest in the Newco with a stake of up to 30% of the new company remains unaffected. The exercise price of the option will be based on the value of EoF's acquisition of Metroweb. The acquisition of Metroweb, the note adds, is expected to be completed by the end of December 2016, subject to the release of the necessary authorisations.
Thus the path that will lead to the "new Eof" opens up concretely. The operation involves several stages: first of all, the recapitalization of Eof by Enel and Cdp Equity, so that it has the necessary resources to acquire the entire share capital of Metroweb. Subsequently, the purchase by EoF of the entire share capital of Metroweb, held by F2i and Fsi Investiment for around 714 million; then the merger by incorporation of Metroweb and its wholly-owned subsidiaries into the group company called Metroweb; finally, the subsequent merger by incorporation of Metroweb into Eof (NewCo).
The press release confirms that, following the transaction, the NewCo will be jointly controlled by Enel and Cdp Equity (even in the event of reinvestment of F2i) and will therefore be consolidated by Enel using the equity method. The implementation of the transaction will allow Enel Oper Fiber to “accelerate the development of the project to build the fiber optic network; expand the cabling perimeter, developing a commercial offer that includes the most important Italian cities and, therefore, which is of interest to all alternative operators who appreciate a project on a national scale (it should be remembered that the Metroweb group has cabled the city of Milan and is wiring the cities of Bologna and Turin); exploit certain industrial skills and know-how developed by the Metroweb group; improve the financial profile of the project and its funding opportunities”.
