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Italy: EUR 4.5bn energy deal signed

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A2A and Ardian have agreed to a non-binding agreement outlining the key elements of an energy generation and supply collaboration in Italy.

A2A and Ardian hope to establish the second largest Italian platform focused on the energy transition, as well as one of Italy’s largest electricity producers and suppliers, through the partnership, with a clear decarbonisation strategy in line with the Italian PNIEC’s and the Paris Agreement’s goals. The relationship builds on a November 2020 agreement between the two corporations that would allow them to collaboratively investigate green hydrogen potential.

A2A will provide full ownership or majority stakes in a portfolio of assets, including energy generation assets (hydro, CCGTs, wind and solar facilities), supply business, energy management storage assets, and hydrogen projects, under the terms of the term sheet. The perimeter of assets that will be contributed in Newco is estimated to be worth around Euro 3.0 billion (enterprise value), resulting in a combined pro-forma EBITDA 2020 of Euro 360 million. This suggests a valuation of approximately Euro 4.1 billion for all A2A business units included in the deal (including minority holdings and portions of business units not given to NewCo) (enterprise value).

Ardian Infrastructure will invest up to Euro 1.5 billion in this new firm, speeding up the roll-out and financing of A2A’s 3GW+ renewable energy plan, which was announced in January 2021. A2A and Ardian have already identified possible targets and will continue to evaluate them in the future. The partnership would become A2A and Ardian’s exclusive vehicle for future investments in the renewable energy generation sector in Italy, as well as their preferred vehicle for collaborative investments in the energy generating business in Italy. Following the capital increase, Ardian Infrastructure will own up to 45 percent of Newco’s stock. The formation of the partnership is contingent on successful due diligence, the negotiation of certain contractual agreements, and the fulfillment of certain other conditions (including approval and authorization by the required external bodies).

A2A and Ardian have agreed to give each other exclusive rights until the end of 2021.

Renato Mazzoncini, CEO of A2A says: “With the new 2020-2030 Industrial Plan of last January, we have more than doubled the growth speed of our Group, in line with the extraordinary acceleration made possible by the redefinition of the PNRR launched by the Draghi Government. We are aware that, within this unique historical context, we are called upon to deliver an extraordinary contribution for the development of our country, pursuing a collective commitment to energy transition and sustainable growth. The agreement with Ardian would make it possible for A2A to accelerate by several years reaching the growth objectives in renewable generation foreseen by the Industrial Plan, combining financial resources with industrial assets. The trust shown by Ardian in the sound industrial leadership of A2A gives us reason to be satisfied with our work so far and is further confirmation of the validity of our vision and of our determination to become a major European player in renewable energy and energy transition.”

Mathias Burghardt, Head of Ardian Infrastructure and member of the Executive Committee of Ardian, says: “Energy transition has been at the forefront of our investment strategy over the past years. A2A is a leading industrial player and a frontrunner in the Italian market with regards to energy transition. We are delighted to partner with A2A and to bring our 15-year long renewable expertise in Italy, which will help A2A to deliver on its ambitions and together develop a leading renewables platform in Italy.”

Arnes Biogradlija
Creative Content Director at EnergyNews.Biz

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