(Alliance News) - FNM SPa announced Monday that it has decided to take over 80 percent of Viridis Energia Spa from Lagi Energia 2006 Srl and HNF Spa, which hold 55.7 percent and 33.3 percent, respectively.

Viridis is an independent power producer with a plant portfolio consisting of about 47 MW of already operational plants located in Northern and Central Italy--of which 45 MW photovoltaic and 2 MW biogas--, about 7 MW of photovoltaic plants under construction, which are expected to come into production by early 2024, and 16 MW of ready-to-build photovoltaic plants, i.e., fully authorized and cantierabili. Approximately 95 percent of the ready-to-operate plants benefit from incentivized tariffs aimed at supporting renewable generation, with the remaining generating capacity selling energy based on market prices.

The entry into renewable energy production also reinforces the environmental goals of the 2021-2025 strategic plan, which includes investments in innovative energy projects, and enables the FNM group to further contribute to the goals of Agenda 2030 as well as to the country's energy transition, in line with similar strategies implemented by other comparable market players.

The total expected price to be paid at closing is EUR59.2 million for the acquisition of the 80 percent stake in Viridis and includes a portion as an advance on the agreed earn-out for the development of a portfolio of plants, to be realized within six years after closing. The acquisition price is calculated on the basis of the consolidated accounts from Viridis referring to the perimeter of the transaction as of last June 30 - which show revenues of EUR8.5 million, an Ebitda of EUR4.9 million and a Net Financial Position of EUR16.2 million -, reduced by any NFP adjustments that occurred between June 30, 2023 and the closing date and may be subject to any further adjustments as a result of the due diligence currently underway. Following the closing, the impact of the transaction will not affect the group's risk profile.

The binding offer is expected to be signed by January 16 while the execution of the sale and purchase agreement, which will be subject to the usual due diligence activities and conditions precedent typical of this type of transaction, is expected by February 19, 2024.

FNM's stock closed Monday down 0.5 percent at EUR0.45 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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