Sources say that bids for a new Italian energy hub are due on October 31.

Two sources familiar with the matter have said that bidders for a stake of a future venture combining the assets of Italian energy company Sorgenia and those of solar power company EF Solare must submit their binding offers by the end October.

One of the sources stated that the buyer would acquire a 27.6% stake, currently held by Spanish fund Asterion in Sorgenia. This would allow him to become an investor in a new, unified energy company with a stake worth around 1 billion euro ($1.1 billion).

F2i, the Italian infrastructure fund, controls both EF Solare (EF Solare) and Sorgenia (Sorenia).

Two sources confirmed that the Greek energy and metals group Metlen (formerly Mytilineos SA) is one of the suitors. Sixth Street, an investment group, is also in the running for the asset.

Two sources confirmed that the deadline for binding bids was delayed by one month compared to the initial timing of the end September.

Metlen, and Sixth Street have declined to comment. Asterion didn't immediately respond to our request for comment.

According to its website, Sorgenia is a leader in wind and biomass power. It has a total capacity of 400 Megawatts (MW). It plans to increase solar capacity by 200 MW through 2027.

EF Solare operates 309 solar farms across Italy and Spain with a total capacity of 1071 MW.

Solar farms are the primary drivers of renewable capacity addition in Italy, as the country strives towards meeting Europe-wide goals for decarbonising the economy.

Solar projects were the main reason for Italy's nearly 6 gigawatts of renewable energy capacity installed in 2017. ($1 = 0,9234 euros) Reporting by Giancarlo Pollina and Elvira Navach Editing by Keith Weir

(source: Reuters)