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MILAN, Sept 13 (Reuters) – Italian multi-utility Iren (IREE.MI) and infrastructure fund F2i are considering a partial sale of their water venture Iren Acqua to bring in a new partner, three sources with knowledge of the matter said.
The subsidiary is controlled by Milan-listed Iren with a 60% stake while F2i holds the rest. It accounted for around 60% of the core profit of nearly 250 million euros generated last year by Iren’s overall water business, according to one of the sources.
The unit could have an equity value of around 600 million euros ($645 million), two of the sources said.
F2i is considering selling its entire 40% stake in the company, the sources said, adding this could trigger the disposal of another 9% by Iren.
A new financial investor could replace the Italian infrastructure fund as a joint venture partner by buying a stake of up to 49% in the subsidiary.
Iren Acqua supplies drinking water in the city of Genoa and the surrounding towns, serving 700,000 people over a total of 2.9 million customers reached by Iren’s water service as a whole.
The unit also manages five water treatment plants and the sewerage system near Genoa according to Iren’s website.
A severe drought last year in Italy highlighted the problems facing the water supply industry, including a fragmented network and leakages, which are widespread particularly in southern regions.
Earlier this year, gas grid distributor Italgas (IG.MI) announced a deal worth more than 100 million euros to buy Veolia’s (VIE.PA) stakes in companies running water services in the regions of Lazio, Campania and Sicily.
Iren — which in addition operates in electricity, gas, heating and waste management — is also in the process of selling a minority stake in its gas network to raise financial resources for investments and future growth.
($1 = 0.9321 euros)
Reporting by Francesca Landini and Giancarlo Navach in Milan; Andres Gonzalez in London; writing by Francesca Landini
Editing by Keith Weir
Our Standards: The Thomson Reuters Trust Principles.
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