ROME, June 9 (Reuters) - A2A has signed a non-binding term-sheet with investment fund Ardian for a partnership in energy generation and supply in Italy, the country’s biggest regional utility said late on Tuesday.
“A2A and Ardian are aiming to establish the second-largest Italian platform focused on the energy transition, and one of the largest electricity producers and suppliers in Italy, with a clear decarbonisation strategy,” A2A said in a statement.
The deal will see Ardian invest up to 1.5 billion euros ($1.8 billion) in equity into a new company of which it will hold 45%.
A2A will transfer into the new company its hydrogen, wind and solar power plants, supply business, storage assets and hydrogen projects.
The assets A2A is contributing to the new firm are being valued around 3 billion euros in terms of enterprise value.
The new company will be the vehicle A2A and Ardian use for future investment in renewable power generation in Italy.
Last year A2A and Ardian agreed to work together to develop green hydrogen projects using renewable energy sources.
“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,” Chief Executive Renato Mazzoncini said in the statement.
A2A, controlled by the local governments of the northern cities of Milan and Brescia, has pledged to spend 16 billion euros between now and 2030 to cut its carbon footprint.
It aims to triple its renewable capacity to 5.7 gigawatts through more than 4 billion euros ($4.9 billion) of investments and acquisitions.
Ardian was advised by Nomura and A2A by Citi.
$1 = 0.8212 euros Reporting by Giulia Segreti; editing by Valentina Za and Stephen Coates