Italy’s Finmeccanica to sell stake in power unit Ansaldo Energia for $1.06 bn

Italian aerospace and defence group Finmeccanica SpA yesterday agreed to sell its stake in power unit Ansaldo Energia SpA to state lender Cassa Depositi & Prestiti SpA for €777 million ($1.06 billion).

Cassa Depositi e Prestiti, through its Fondo Strategico Italiano (FSI) fund, will initially buy 84.55 per cent of Ansaldo Energia and purchase the remaining 15 per cent via a put and call option in 2017.

Under the deal, Finmeccanica, Italy's second-largest industrial group, will initially sell 39.55 per cent of Ansaldo Energia, while US private-equity firm First Reserve will sell its entire 45 per cent holding to FSI.

The management of Ansaldo Energia holds 0.45-per cent stake in the company.

The deal also includes an earn-out of up to €130 million that will accrue in the years 2014, 2015 and 2016 subject to Ansaldo Energia reaching already agreed sales target.

Genova-based Ansaldo Energia is Italy's largest supplier and service provider for power generation plants and components.

It is a full-cycle, integrated operator, with the capabilities to build turnkey power plants on green field sites using its own technologies and its own independent design, production, construction, commissioning and service resources.

The company has an installed base of about 175,000 MW in single and combined cycle gas turbine, steam, hydroelectric and geothermal plants. It also has a strategic presence in the nuclear and renewable energy sectors.

Finmeccanica, 30-per cent owned by the Italian government, has been trying to raise around €1 billion through asset sales in order to reduce its €5 billion debt.