State Grid talks for stake in Italian grid at advanced stage

Italian state lender Cassa Depositi e Prestiti (CDP) said yesterday it was in advanced talks with State Grid Corp of China for the sale of a 35 per cent stake in grid holding company CDP Reti and expects to conclude a deal soon.

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With the purchase of a stake in CDP Reti, State Grid Corp, which distributes power to 1.1 billion people across nearly 90 per cent of China, would gain access to a stable flow of dividends, an analyst said. Photo: Reuters

Published: 1:35am, 25 Jul 2014

Italian state lender Cassa Depositi e Prestiti (CDP) said yesterday it was in advanced talks with State Grid Corp of China for the sale of a 35 per cent stake in grid holding company CDP Reti and expects to conclude a deal soon.

CDP Reti, wholly owned by CDP, controls gas grid Snam and will soon receive a controlling stake in power grid Terna, which is owned by CDP.

CDP is negotiating on the China sale with State Grid International Development (SGID), a wholly owned subsidiary of China's state grid, the state lender said in a statement, confirming an earlier report.

"CDP has admitted SGID to the final stage of the auction procedure started in December 2013 and the parties are confident that a final agreement could be reached within a short time frame," CDP said.

CDP gave no financial details of the possible deal.

However, CDP chief Executive Giovanni Gorno Tempini told journalists this week that the value of CDP Reti, based on the market capitalisations of both Snam and Terna, could be €6.8 billion (HK$70.9 billion).

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