Milan, December 6, 2007 – Under an agreement signed today, Edison will sell to Cofathec Servizi, a company of the Cofathec Group, seven thermoelectric power plants that operate within the framework of CIP6 contracts with a total installed capacity of about 540 megawatts. The total value of the transaction, amounting to 226 million euros, is substantially consistent with the carrying value of the divested assets.
Specifically, Edison will transfer to a newco, which will then be sold to Cofathec Servizi, five power plants located in Castelmassa (Ro), Nera Montoro (Tr), Pomigliano (Na), Settimo Torinese (To) and Spinetta Marengo (Al), which are wholly owned by Edison. Moreover, notwithstanding the preemptive rights of minority shareholders and provided these rights are not exercised, Edison will sell directly to Cofathec Servizi the 70% interests it holds in the Boffalora (Mi) and Celano (Aq) power plants. All power plants are located within compounds that house industrial facilities and operate under CIP6 contracts that are scheduled to expire between 2008 and 2014. In 2006, these seven power plants produced about 3.3 terawatt-hours and generated sales revenues of about 360 million euros.
This transaction, which is expected to close once it is cleared by the relevant antitrust authorities (presumably in the first quarter of 2008), will have a positive impact of about 220 million euros on the Group’s consolidated net financial position. The final sales price will be adjusted to reflect any changes in the net financial position of the divested companies. The sale of these power plants took place after a competitive bidding process involving several industrial and financial bidders. Consistent with Edison’s Industrial Plan, it is part of a process designed to streamline the Group’s facilities portfolio and focus on combined-cycle power plants that serve the deregulated market and the development of facilities that use renewable sources of energy.
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Public disclosure required by Consob Resolution No. 11971 of May 14, 1999, as amended.
