Baku, October 17, AZERTAC
Edison and Gas Natural Fenosa have signed today a binding agreement for the acquisition by Edison of Gas Natural Vendita Italia and of the Shah Deniz II gas contract. Edison, through this transaction, increases by 50% its customer base reaching a critical mass that will produce significant synergies among all of its business units.
Edison will acquire 100% of Gas Natural Vendita Italia (GNVI), the company owned by Gas Natural Fenosa, that commercializes natural gas and electricity across Italy. The purchase price is 192.8 Million Euros corresponding to an Enterprise Value of 263 Million Euros after debt repayment and provisions.
As part of the agreement and subject to the closing of Gas Natural Vendita Italia’s acquisition, Edison will also acquire a 11 TWh long term gas supply contract from the Shah Deniz II field. This contract perfectly fits with Edison’s gas portfolio leveraging its offering of gas at a competitive price to its customers and guaranteeing the security of supply of the Italian energy system in the long term. The gas import from Shah Deniz II is expected to start at the end of 2020 following the completion of the Trans Adriatic Pipeline (TAP). In particular, the total consideration payable is 30 Million Euros for the gas supply contract, of which a down payment of 10 Million Euros and an earn-out of 20 Million Euros, payable starting from 2021 subject to the first delivery of gas to Italy through the TAP pipeline.
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