Delmi To Borrow EUR1.25 Billion From Bank Syndicate To Buy Edipower
05/14/2012| 12:09pm US/Eastern
Italian investment vehicle Delmi will borrow EUR1.25 billion from a syndicate of nine banks to buy power generator Edipower SpA, Delmi's controlling shareholder, A2A SpA (A2A.MI), said Monday.
A2A, Italy's biggest municipal utility by market value, said the amount is "much" higher than originally requested. The money will be used both to buy Edipower, and repay Edipower-related debt held by the power generator's current shareholders.
A2A, as a Delmi investor, agreed to take over Edipower as part of a deal ending its joint control of Edison SpA (>> Edison SpA) with Electricite de France SA (>> EDF). The French company will now have sole control of Edison, Italy's No. 2 electricity and natural gas company by capacity.
The financing will be finalized by the end of May, A2A said.
-By Liam Moloney, Dow Jones Newswires; +39 06 6976 6924; firstname.lastname@example.org