By Francesca Landini and Cristina Carlevaro MILAN (Reuters) -Italy’s biggest gas distributor Italgas expects double-digit growth in net income and core profit under a new plan to 2030, after signing a 5.3 billion euro deal to acquire smaller rival 2i Rete Gas on Saturday. The group said on Monday it would ensure its dividends […]
By Francesca Landini and Cristina Carlevaro
MILAN (Reuters) -Italy’s biggest gas distributor Italgas expects double-digit growth in net income and core profit under a new plan to 2030, after signing a 5.3 billion euro deal to acquire smaller rival 2i Rete Gas on Saturday.
The group said on Monday it would ensure its dividends grew 5% annually until 2026, starting from the payout for 2023, compared to a previous minimum of 4%, while confirming it would pay out 65% of adjusted net income per share .
It pledged to invest 15.6 billion euros ($17.11 billion) over the next seven years to complete the acquisition of 2i Rete Gas, develop gas distribution in Italy and Greece and strengthen its presence in the water sector.
As well as consolidating Italy’s gas distribution sector, the acquisition of 2i Rete Gas, the country’s second-biggest gas distributor, will create a leading player in Europe.
The group said it would launch a rights issue of 1 billion euros to fund the deal, which will likely require antitrust remedies.
Italgas expects to save 200 million euros in cost efficiencies after the deal. In addition, it anticipates an increase in revenue due to investment for the complete digital overhaul of the 2i Rete Gas network.
Turnover is forecast to reach 3.6 billion euros, with core earnings of 2.8 billion euros by 2030.
This represents an average growth rate of 13% for earnings before interest, taxes, depreciation and amortisation (EBITDA) and net profit, and about 10% for earnings per share.
($1 = 0.9115 euros)
(Reporting by Cristina Carlevaro and Francesca Landini, editing by Giulia Segreti, Kirsten Donovan)
