The multiutilities of the North are ready to compete for Egea Energia. According to rumors, Iren is willing to enter into negotiations with the Alba energy and gas distributor, which is in difficulty due to the energy crisis. His interest is added to that already formalized by A2A. The Lombard company confirmed contacts with Egea on Thursday, specifying that the talks started are not binding: up to what point?
This is what Iren should verify over the next week, meeting the top management of Egea. In recent days, the company owned by the municipality of Turin has allegedly sent Egea a formal letter to confirm its interest in evaluating a strategic partnership, due to the synergies and guarantees that can be achieved with the activities carried out by Iren in the Piedmont area . Collaborations that would be more complicated to create with operators from other regions.
The company chaired by Luca Dal Fabbro had already had an initial meeting in recent months with the management of the Alba group. The goal, advocated by CEO Vittorio Armani, was to create a multi-utility in the North West capable of rivaling A2A. The operation then faded away, but could now prove essential to ease the financial strain on the holding company led by PierPaolo Carini.
Market operators also confirm that informal discussions between Iren and Egea have continued in recent months, also in light of the support that the former had offered to the latter in the period of difficulty following the energy crisis. Iren is therefore interested in studying the dossier and, as mentioned, there could soon be the first contacts between the management of the two companies.
The war in Ukraine caught the group from Alba in the midst of an investment programme. The flare-up in gas prices has shaken the balance sheets of Egea Commerciale, the company branch that buys energy from large producers and resells it to over 280,000 customers. The company is running into problems on both fronts. Some customers have started paying late. According to a report by Alvarez & Marsal, as of 31 October, overdue credits amounted to 86.8 million, of which 48.2 from companies, 21.8 from consumers. At the same time, Egea’s payables to suppliers such as Terna, Edison and Enel reached 101.4 million euros as at 31 December, of which 74.8 overdue. Added to these is the installment plan for 107.7 million in tax arrears.
To meet these obligations, in December Egea signed a 125 million loan with Macquarie Bank, to be repaid by June 2023. The contract provides that the Australian giant can demand immediate repayment of the loan and payment of interest upon the occurrence of certain circumstances. The ancillary agreements also require that Egea and its subsidiary maintain certain equity and cash parameters, compliance with which is verified quarterly.
Hence the need for the Alba multi-utility to proceed with a restructuring operation, as defined by CEO Marco Meo in confirming the due diligence started with A2A. The maneuver could lead to the sale of the majority of the Egea group which is currently controlled by the Carini family and owned by various municipalities. At the time of the first attempt in March 2022, Iren had put 120 million on the plate to buy Egea Commerciale. The inclusion of the Lombard rival could raise the stakes. Financial deadlines, however, loom, shortening the time for negotiations.