ERG, through its subsidiary ERG Power Generation SpA, signed an agreement with VEI Green, an investment holding company controlled by PFH, for 100% purchase of ForVei, ninth photovoltaic operator in Italy. This was announced by the Genoese company in a press release.
ForVei, a joint venture between VEI Green and Foresight established in 2011, owns and manages 30 photovoltaic plants, which came into operation between 2010 and 2011, located in 8 regions between Northern and Southern Italy, with an installed capacity of 89 MW and an annual production of approximately 136 GWh, equal to approximately 77 kt of CO2 emissions avoided. 100% of installed capacity benefits from incentives with an average expiry of 2030.
THEenterprise value of the transaction is equal to 336 million of Euro; the expected annual Ebitda for 2017 is around 35 million euros. The assets are currently financed through non-recourse project financing for an amount of approximately 180 million euros, and leasing contracts for an amount of approximately 60 million euros. The closing, expected by the end of January 2018, remains subject to the approval of the transaction by the Antitrust and the approval of the lending banks.
“The acquisition of this important 89 MW photovoltaic platform – commented Luca Bettonte, ERG's CEO – marks ERG's entry into the solar sector and is another important step in the strategy of technological diversification. The significant size of the operation will allow us to immediately expand and optimize our Energy Management portfolio with high quality plants geographically well located also in the Northern Italy market area, as well as to capitalize on our industrial skills in asset management. Moreover, ERG's entry into the photovoltaic sector in Italy takes place in a still very fragmented market context which could offer further possibilities for consolidation, and allows us to acquire the necessary know-how to participate in growth across borders in a rapidly expanding sector" .
