Italy’s renewable energy group Enel Green Power (EGP), and infrastructure fund F2i, have signed an agreement to open a photovoltaic (PV) joint-venture in the country.

The new joint-venture will have equal shares, controlled by both the companies, and will include a portfolio of 210MW of operating solar photovoltaic capacity.

Under the deal, EGP will contribute 105MW of assets from its Altomonte FV subsidiary to the new joint-venture. F2i will also contribute 105MW of assets held by its F2i Solare 1 and F2i Solare 3 units.

The enterprise value of EGP is €230m, while F2i’s assets are valued at €285m.

To ensure equal shareholding, EGP will also contribute €18m in cash, while transferring Altomonte’s investment in the new company. F2i can choose to contribute an additional 58MW of capacity by next year.

The value adjustment standard for this kind of transaction is expected to be carried out in 2016.

The new joint-venture focuses on bringing together different operating PV solar plants owned by various financial institutions and private operators in the Italian PV market.

EGP hopes that the joint-venture will create value by reducing operating expenses and optimising energy management with its assets and expertise.

Furthermore, the company is seeking to further optimise its debt in order to seize new financial opportunities in a new low-interest market environment.

EGP can choose to acquire an additional 2.5% of the joint-venture, which would give it control of the company.

The deal is expected to close by the end of this year, and remains subject to the approval of the EU antitrust authority.