MILAN – Private equity investor Terra Firma has launched the sale of its Italian solar-power asset platform RTR, which could be worth more than 1 billion euros ($1.2 billion), sources said on Monday.
Information documents, or teasers, have been sent out for the sale of the 332 megawatts solar power company which owns 132 plants across Italy, one source said. Another source said pre-marketing would start with some interested parties soon, while data room access would be granted at the beginning of March.
The seller appointed UniCredit, JP Morgan and Jefferies last year to advise on the sale. Italian utility Enel, in tandem with infrastructure fund F2i, has already said it would be looking at RTR.
Sources have said a series of investment funds, including renewables investor Tages, had expressed interest while Italian renewable company Erg was also eying the asset.
One of the sources said there was interest from funds and industrial players in the Middle East and Asia, including investors from Japan and China while oil companies might also be in the reckoning as they move to green their footprint.
The companies were not immediately available for a comment. RTR, which last year generated 478 gigawatt hours of power, posted core earnings of more than 135 million euros in 2017. Subsidies accounted for 86 percent of its sales.
In a slide seen by Reuters, the company expects 1.7 billion euros of cumulative incentive revenues in the period 2018-2030.
RTR’s business includes plants Terra Firma has bought since 2011 from companies such as Italian power grid operator Terna , Erg and France’s EDF. Debt in 2016 stood at around 900 million euros.