EGP merger with Enel given green light

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Italy’s largest utility, Enel has repurchased renewable energy developer, EGP, following the approval of the non-proportional spin-off at an extraordinary shareholders meeting, held today. A total of €3.1 billion (US$3.3 billion) in shares was issued.

For each EGP share, investors will receive 0.486 Enel Group shares under the deal. Previously, Enel owned a 70% stake in EGP, having sold a 30% share in 2010 for around €2.26 billion (US$2.41 billion).

Following the closing of the transaction, expected by the end of Q1 2016, EGP and its foreign subsidiaries will become fully owned subsidiaries of Enel Group, and EGP will be delisted.

In a statement announcing the deal in November, Enel said the deal will see the investment capacity of EGP increased, thus allowing it to grow its project pipeline.

EGP, valued at $10 billion by Thompson Reuters, is one of Enel’s most profitable businesses. Established in 2008, it was listed on Italy’s stock exchange in 2010, where it went on to become one of the biggest clean energy firms, and manufacturers of thin film modules, globally.

Early in 2015, EGP announced a $6 billion disposal plan, aimed at streamlining its operations. Later that year, it sold $1 billion worth of renewable energy assets in Portugal to Portuguese investment firm, First State Wind Energy Investments. At the time, it said the sale was the first of a number of disposals.