Enel sells 49% Stake in Enel Libra Flexsys to Sosteneo

On March 1st, 2024, Enel Italia S.p.A. (“Enel”), 100% controlled by ENEL S.p.A., has reached an agreement with Sosteneo Fund 1 HoldCo S.à.r.l., a fund backed by Generali, to sell a 49% share capital stake consideration in Enel Libra Flexsys, a newly incorporated vehicle owning 2.6GW of Battery Storage Systems and Open Cycle Gas Turbine assets in operation or under construction in Italy. The closing of the operation, expected by the first half of 2024, is subject to customary conditions precedent for this type of transaction, including the clearance of the competent antitrust authorities and the positive golden power procedure.

• The asset portfolio includes i) 23 battery energy storage systems projects (“BESS”) for a total capacity of 1.7GW, located mainly in North of Italy and Sardinia and ii) 3 renovation projects for open cycle gas turbines (“OCGT”) for a total capacity of 0.9GW located in Latium and Sicily. This assets portfolio will benefit from the capacity payment scheme defined by Terna and will play a crucial role in the Italian energy decarbonization by providing firm power capacity in the context of increased price volatility due to renewables penetration. 
• The partnership with Sosteneo is aligned with the targets of 2024-2026 Industrial plan of ENEL which aims to retain control of strategic assets while maximizing productivity and returns on invested capital.
• The agreement entails the payment by Sosteneo of a price at closing of €1.1bn, which will be eventually increased by €35m when two BESS plants will be transferred to Enel Libra Flexsys.

The Enterprise Value for the 100% of Enel Libra Flexsys recognized by Sosteneo in the context of the transaction is c. €2.5bn once the investment cycle foreseen by the project will be completed, which represents a multiple for installed capacity of €1.0m/MW. The transaction is expected to generate, overall, a positive effect on the Enel Group's consolidated net debt of c.€1.1bn. However, the transaction is not expected to have any impact on the Group's ordinary economic results.

Mediobanca acted as financial advisor to Enel during all the phases of the transaction, involving the structuring and execution of the deal. 
 
This transaction, which is the largest deal in the BESS space in Europe this year, seals Mediobanca relationship with Enel and reinforces Mediobanca position as M&A leader in the South European renewable and energy transition space with 3 large transactions (+€1bn) transactions announced in the last 4 months