To Enel the hydroelectric plant of Erg, a 1 billion operation

To Enel the hydroelectric plant of Erg, a 1 billion operation
To Enel the hydroelectric plant of Erg, a 1 billion operation

Erg sells the entire capital of ERG Hydro to Enel Produzione through its subsidiary Erg Power Generation. The consideration in terms of enterprise value of the transaction, anticipated by Il Sole 24 Ore on 20 July, calculated as of 31/12/2021, is equal to 1 billion. The portfolio of assets owned by Erg Hydro consists of an integrated hydroelectric power production system that extends between Umbria, Lazio and Marche. It consists of 19 hydroelectric plants, 7 minihydro plants, 7 dams, 4 basins (corresponding to Salto, Turano, Corbara and Piediluco) and a pumping station, for an efficient power of 527 megawatts. Average annual production is around 1.5 TWh. The operation of the hydroelectric complex is guaranteed by 114 people, included in the perimeter, including highly specialized technicians in the operational management of the plants, energy management specialists and dedicated staff. For these resources, thanks to a fruitful collaboration with the trade unions and the willingness of the buyer, the company has reached “an innovative agreement for the electricity sector that guarantees important protections for the ERG workers who are part of the transferred company”, reads a Note.

Paolo Merli, CEO of ERG commented: «The agreement with Enel represents a first important step in the further transformation of ERG towards a pure Wind & Solar model, which we plan to complete with the sale of the thermo assets over the next few months. . The operation, in addition to guaranteeing a correct valorisation of the assets sold, makes us particularly proud because it allows the integration of our people within a primary global energy group with a deep-rooted presence in Italy. Asset Rotation, one of the pillars of our 2021-2025 strategic plan, will allow us to accelerate the path of growth and geographical diversification with a better balance of activities between Italy and abroad ».

Loading…

In the deal Rothschild & Co. and Mediobanca jointly played the role of financial advisor, Enel Produzione was flanked by Bnp Paribas. DLA Piper the role of legal advisor, Ernst & Young the role of accounting and tax advisor, Arup the role of technical advisor and Ref-and the role of market advisor. Enel was instead assisted by Bnp Paribas and Hogan Lovells.

Source

Enel hydroelectric plant Erg billion operation

PREV Weather forecast, Italy split in two between great heat and thunderstorms: the map
NEXT VIDEO | Here are the brave young people who want to take back Rome