ERG SpA to Acquire 80% Stake in IP Maestrale Investments Ltd from GDF Suez SA's Subsidiary International Power Consolidated Holdings Ltd

ERG SpA announced that on December 5, 2012 it reached an agreement with GDF Suez SA's wholly-owned subsidiary, International Power Consolidated Holdings Ltd, for the acquisition of an 80% equity interest in IP Maestrale Investments Ltd, operator in Italy in the sector of renewable energy from wind sources with an installed capacity of 636MW, of which 550MW in Italy and 86MW in Germany. The value of the acquisition – in terms of enterprise value (debt + equity relating to 100%) - is EUR 859 million, corresponding to approximately EUR 1.35 million per MW of installed capacity. The amount payable for the shares upon transaction closing is EUR 28.2 million for an 80% interest in IP Maestrale's capital. The agreements provide for a put and call option on the remaining equity interest of 20%, exercisable starting from at least three years after the closing. The Italian wind farms are located in Sicily (161MW), Sardinia (111MW), Campania (95MW), Puglia (91MW), Basilicata (55MW) and Molise (37MW), while the German wind farms are located in the central and northern regions. The producibility of the assets is estimated at almost 2,000 hours per year, which is above the national average. The transaction closing, subject to approval by the Antitrust Authority and acceptance of the change in control by the financing institutions, is scheduled to take place in the first quarter of 2013.