UniCredit acquires minority stake in ERG Renew

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
UniCredit acquires minority stake in ERG Renew

Italian energy developer, ERG Renew, has signed an agreement with UniCredit whereby the bank will enter the ERG Renew shareholder body via the acquisition of a minority stake corresponding to an equity interest of 7.14%, valued at €50 million, through a reserved capital increase.

UniCredit will enjoy the governance prerogatives typically granted to a minority investor such as the right to appoint a member to the Board of Directors.

The agreement will enable ERG Renew to raise new capital to support its plans for development in the renewable energy sector in Italy and abroad and include among its shareholders a leading European financial institution with a significant presence in the East European markets.

The agreement provides for a lock-up period of four years starting from the transaction closing, subject to the possibility of ERG Renew's admission to listing, in addition to granting UniCredit the option to sell the shareholding to ERG in the event that listing does not occur and in the case of failure to agree on strategic operations.

The transaction closing is scheduled to take place no later than January 2014.

Luca Bettonte, ERG's Chief Executive Officer, stated:

I am really satisfied about the agreement reached with UniCredit, which confirms the importance of the results hitherto achieved in renewable energy and will make it possible to boost ERG Renew's growth, particularly abroad, also in view of the company's potential return to the Stock Exchange.

The company has 1,274 MW of wind energy projects across Europe and it is Italy's largest wind producer.

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.