On August 2nd, 2021, ERG (€3.9bn mkt cap) signed an agreement for the disposal 100% of ERG Hydro to Enel (€79.1bn mkt cap).
Text ENG: Please find below a brief description of the deal announced by ERG in relation to the disposal of the 100% of ERG Hydro to Enel, where Mediobanca acted as sell-side financial advisor to ERG:
- The portfolio of assets owned by ERG Hydro consists of an integrated system for the production of hydroelectric energy that spreads across Umbria, Lazio and Marche with a total installed capacity of 527MW. The average EBITDA in the last three years was €106m and the perimeter will be transferred without any debt.
- The consideration in terms of enterprise value (calculated as at 31/12/2021) is equal to €1.0bn and the closing is expected at the beginning of 2022.
- Mediobanca acted as ERG financial advisor, providing support through all the phases of the transaction and structuring an articulated competitive process involving more than 130 potential investors.
The transaction confirms once again Mediobanca long-term strong relationship with ERG; in addition, it confirms the bank’s expertise in the energy sector and its unparalleled angle as reference bank for landmark and complex transactions.