Italy plans €2 billion grid sell off to China’s State Grid Corp

• 10 years ago (2014-07-28)
• Junior Isles

Asia 894

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Italy is planning to sell a €2 billion, 35 per cent stake in its energy grid holding company CDP Reti to China's State Grid Corp, the world’s largest state utility, according to media reports.

CDP Reti, which is wholly-owned by investment agency Cassa Depositi e Prestiti (CDP), is also due to take control of a 29.9 per cent stake in power grid company Terna.

Terna and China's State Grid Corp are each also interested in acquiring a 66 per cent stake in Greece's state-owned power company ADMIE, put up for sale by the Athens government.

Matteo Del Fante, Terna’s CEO, has said the move by State Grid Corp would not threaten his group's strategy of expansion outside its home market, despite the potential for tension between the rival bidders.

"I have no evidence of any potential impact on governance issues from China State Grid... It will have no impact on strategy," he reportedly stated.
Del Fante said the Greek grid would consider conflicts of interest certifying the profiles of different bidders for its network, but could not be drawn on the potential for a joint bid by Terna and State Grid Corp.

Terna is looking to increase returns for its shareholders by investing in projects outside its core Italian business. Terna has revealed that core earnings in the first half of 2014 had been boosted by its non-core business, rising 2.8 per cent year on year to €753 million ($1 billion).