Finmeccanica to sell power unit to Italy state fund for 777 mln euros

MILAN Fri Oct 4, 2013 5:56pm EDT

MILAN Oct 4 (Reuters) - Italy's Finmeccanica agreed to sell power unit Ansaldo Energia to Italy's state-backed fund for 777 million euros ($1.06 billion), the aerospace and defence group said on Friday.

State-backed lender Cassa Depositi e Prestiti, through its Fondo Strategico Italiano fund, will buy 85 percent of Ansaldo Energia by the end of 2013 and the rest via a put and call option in 2017, for 777 million euros.

Under the deal, Finmeccanica will initially retain 15 percent of Ansaldo Energia and cash in 273 million euros, while U.S. fund First Reserve will sell its entire 45 percent holding to FSI.

The transaction also includes an earn-out worth up to 130 million euros, maturing in 2014, 2015 and 2016, linked to economic results already laid out in the company's business plan.

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