ERG S p A : Acquisition of 3 wind farms in German...

Genoa, 19 August 2019 - ERG, through its subsidiary ERG Windpark Beteiligungs GmbH, has signed an agreement with a company controlled by the German investment firm Aquila Capital, regarding the acquisition of a 100% equity stake in three German companies, owners of a corresponding number of wind farms located in the Mecklenburg-Western Pomerania region of north-east Germany.

The wind farms, which have an overall installed capacity of 34 MW and are equipped with 11 Vestas V112 wind turbines, came on stream in 2014. Their average annual output during the past 4 years amounted to around 89 GWh, corresponding to more than 2,600 equivalent hours and approximately 67,000 t of avoided CO₂ emissions per year. The wind farms are entitled to benefit from an overall incentive tariff, which in 2018 averaged 97 Euro/MWh, for a period of 20 years.

The transaction closing is scheduled to take place in the third quarter of 2019, following authorisation by the German antitrust authorities. The expected transaction price in terms of equity value amounts to 37 million Euro, corresponding to an enterprise value of 83 million Euro. Average annual EBITDA is forecast at approximately 7 million Euro.

Luca Bettonte, ERG's Chief Executive Officer, commented: 'Following the coming on stream of the 22 MW Linda wind farm in June and our recent acquisition of a development pipeline with a total capacity of over 200 MW, with this transaction ERG expands its presence in the German onshore wind power market, taking its installed power in the country to 272 MW. The wind farms acquired, which can be defined as best-in-class owing to the high technological and windiness quality that characterises them, allow us to target well ahead of schedule the Mergers & Acquisitions objectives included in the Business Plan with a view to supporting growth. Moreover, our knowledge of the acquired facilities, whose technical and commercial management we have been handling for the past two years, and their localisation in the vicinity of other Group wind power assets, will enable the achievement of additional industrial synergies.'

ERG has been assisted in this transaction by Rothschild & Co. Italia (Financial advisor), Taylor Wessing (Legal advisor), Pwc (Accounting & Tax advisor) and Fichtner (technical advisor).

This press release, issued at 4.50 p.m. (CEST) on 19 August 2019, is available to the public at the offices of Borsa Italiana S.p.A., on the eMarket Storage authorised storage mechanism (www.emarketstorage.com) and on the Company's website (www.erg.eu) in the section 'Media/Press Releases'.

Contacts:

Sabina Alzona Media Relations Manager - tel. + 39 010 2401804 - mob. + 39 340 1091311 - email: [e-mail]
Emanuela Delucchi IR Manager - tel. + 39 010 2401806 - e-mail: [e-mail]
Matteo Bagnara IR - tel. + 39 010 2401423 - e-mail: [e-mail]
www.erg.eu - @ergnow