Glabal solar power company Etrion has signed a definitive sale and purchase agreement with Ultor, a joint venture owned equally by Enel Green Power and Fondo Italiano per le Infrastrutture ‘F2i’.
Ultor will initially pay €78m for Etrion’s 60MW Italian solar portfolio and assume a related project-level debt of €221m, with potential additional cash earn-out payments of up to €24m depending on the outcome of certain legal and regulatory proceedings.
Etrion's chief executive officer Marco Northland said: “We are pleased to sign a share purchase agreement with Ultor for the sale of our 60MW Italian solar portfolio.
"Etrion started as a private solar developer focused on Italy and quickly became one of the largest solar power producers in the country through internal development and several acquisitions.
“Since entering Italy in 2009, we have collected over €47m in cash distributions from these projects. We have executed across the full project lifecycle – most recently optimising production, reducing operating costs, and extracting value through refinancing.
“The sale of the Italian assets demonstrates our ability to monetise solar assets at multiples of our original investment. The sale proceeds will allow us to accelerate our growth in Japan while, at the same time, deleveraging the company through repaying part of our corporate bond.”
The agreement is subject to certain conditions. Both the companies expect the transaction to be closed by January next year.