Italy’s Edison and Gas Natural Fenosa have signed a binding agreement for the acquisition by Edison of Gas Natural Vendita Italia and of Azerbaijan’s Shah Deniz II gas contract, said the message posted on Edison’s website.
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.
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.
“This transaction is a breakthrough opportunity for our company: on the one hand, we grow our role in the Italian retail market, which is one of the pillars of our development plan. On the other hand, through the acquisition of Shah Deniz II contract, we enlarge our gas supply portfolio guaranteeing gas at a competitive price to all our customers and the security of the Italian energy system in the long term,” said Marc Benayoun, Chief Executive Officer of Edison.
Edison will acquire 100 percent 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 provision.
The acquisition of Gas Natural Vendita Italia is subject to the European Competition clearance. Edison will fully control and consolidate Gas Natural Vendita Italia as from the closing date, which is expected to occur between December 2017 and March 2018.