Italgas on Expansion Course: Billion-Euro Investment Following Takeover of 2i Rete Gas

The Italian company Italgas has announced ambitious growth targets and plans, with a new strategic plan, to achieve profits of nearly 3 billion euros by 2030. This is related to the recently agreed acquisition of rival 2i Rete Gas, which will make the company the largest operator of distribution networks in Europe. Italgas forecasts earnings before interest, taxes, and depreciation of 2.8 billion euros for 2030 and envisions a dividend policy with a payout ratio of 65%, aiming to ensure annual growth of at least 5%. Despite a short-term rise in stock prices on the Milan Stock Exchange, the gains were later lost. Following the deal with 2i Rete Gas, Italgas plans to invest a total of 15.6 billion euros, an increase of 7.5 billion euros compared to the previous plan. The investments are primarily intended for distribution, water management, and energy efficiency sectors. Italgas also aims to invest one billion euros in Greece through its subsidiary Enaon, which is 100 million euros more than previously planned. The acquisition of shares in 2i Rete Gas from the current owners, F2i SGR and Finavias, is valued at an enterprise value of 5.3 billion euros. The completion of the purchase is scheduled for the first half of 2025, subject to regulatory approvals. The financing will be arranged through a bridge financing concept organized by JPMorgan, which will be refinanced with a 1 billion euro capital increase.