IFM Investors is investing an initial €1bn in a partnership with Italian company San Quirico to acquire ERG, the leading onshore wind power operator in Italy.
IFM’s open-ended IFM Net Zero Infrastructure Fund (IFM NZIF) and San Quirico will form an entity, which will, in turn, acquire and hold a 62.5% stake in ERG. IFM NZIF and its affiliates will hold an initial 35% stake in the new entity.
“The investment by IFM NZIF and its affiliates is in excess of €1bn and includes an option for an additional €500m of capital to support ERG’s growth target,” said IFM.
Post-transaction, San Quirico will keep a controlling ERG interest to ensure that the transaction will not result in a public offer nor the delisting of the company.
The ERG group, with generating facilities comprising roughly 3GW of installed capacity is a major independent operator in the production of electricity from renewable sources such as wind, solar and a co-generative thermoelectric power plant.
Kyle Mangini, global head of infrastructure at IFM said: “IFM is excited to partner with SQ and ERG for our first direct investment in Italy.
“We consider ERG an outstanding renewables operator with a pioneering approach to the energy transition and strong growth potential on a global scale.”
Mangini said this investment reflected IFM’s strategy of investing in sustainable infrastructure assets, where the returns generated help boost the retirement savings of millions of pension fund members.
Edoardo Garrone, chair of San Quirico and ERG, said: “IFM will bring a wide international footprint that reaches far beyond Europe as well as its strong long-term financial support, to allow ERG to pursue faster, broader, and more diversified growth.”
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