(Alliance News) - Iren Spa announced that it has signed a binding investment agreement to acquire a 50 percent stake in the share capital of a NewCo, into which the operating branches of EGEA Spa, EGEA Commerciale Srl and EGEA Produzioni e Teleriscaldamento Srl will be transferred.

The NewCo will be 50% owned by Iren through a capital increase of EUR85 million, which it will subscribe to and release at the closing of the transaction, and the other 50% by a MidCo, whose share capital will be wholly owned by EGEA Spa.

Iren will have both a four-year call option, exercisable as of March 31, 2025, to acquire the stake held by MidCo, and the option, as of Jan. 1, 2025, to subscribe to a EUR42.5 million reserved capital increase, which would bring Iren's share to 60 percent of NewCo, "to follow up on further development investments, predominantly in district heating and integrated water service," the company note says.

Iren trades in the green by 0.3 percent at EUR1.90 per share.

By Maurizio Carta, Alliance News reporter

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