Italian solar company TerniEnergia Spa has agreed to sell its EPC and O&M photovoltaic business to UK-based GIL Capital Ltd for €2 million ($2.3 million). The transaction, for which a non-binding memorandum of understanding has been signed, is set to be finalized by the end of June.
TerniEnergia said the sale will permit it to continue its PV project development business through a new subsidiary – TerniEnergia Progetti – which will concern domestic and overseas projects.
A company statement said: “The agreement will allow the continuity of the photovoltaic business, in which TerniEnergia has gained … expertise; the continuity of the brand, strongly affirmed in the sector; the preservation of the operational headquarters of ‘TerniEnergia Progetti’ in the industrial area of Nera Montoro (TR); and the protection of employment for 21 employees of TerniEnergia.”
TerniEnergia specified the newco will not include the contract for construction of the 10 MW photovoltaic plant it is building in Tunisia.
In August, TerniEnergia unveiled a plan to reduce the workforce at its Nera Montoro headquarters, in Terni, central Italy. The company said at the time the plan would affect 66 employees of the division for photovoltaic systems and energy saving. In December the company sold 17 MW of PV assets in Italy as part of a strategic re-positioning aimed at selling, among other things, non-core PV assets.
In its financial results for the first quarter, the company reported turnover of only €8.5 million, down 71.7% year-on-year and posted a net loss of €2.4 million.