Solar Flair For Hands?

A company wholly owned by Terra Firma Capital Partners III forms part of a three-strong consortium which has just taken over Italian solar power company Nuova Rete Solare (which translates as New Solar Network). RTR Capital, the company in question, lines up alongside Terna S.p.A. and SunTergrid S.p.A. as the owners.

NRTS is involved in the development, construction and operation of photo-voltaic (PV) plants located inside or adjacent to Terna’s substations, which are currently at different phases of development. By the planned closing date, NRTS will have finalised PV plants from 50MWp to 78MWp capacity, located in various Italian regions.

The enterprise value (market capitalisation of the company plus its debt) of the transaction is estimated at around €180m-260m euro. It has been determined on a modular basis reflecting the eligibility of the different plants for the 2011 Conto Energia feed-in tariff.

Terna has been advised by Rothschild as financial adviser and by Studio Legale Chiomenti as legal adviser. Bank of America Merrill Lynch advised Terra Firma. Rothschild and Mediobanca issued a fairness opinion on the enterprise value to Terna’s board of directors.

Since its establishment in 1994, Terra Firma has invested approximately €14bn of equity capital mainly in Europe and has completed investments with an aggregate value of €44bn, with significant expertise in the energy and utilities sectors. In March 2011 it acquired Rete Rinnovabile S.r.l.(renewable network) from SunTergrid.