Italgas move from words to deeds. Paolo Gallo, at the helm of the gas distribution company, has given himself a precise objective: to create the first European operator and with a capitalization above 15 billion euros and the way is the acquisition of 100% of 2i Gas network, for which he is finishing retouching thebinding offer to be presented in the coming weeks.
Today Italgas has lowered the first ace: A capital increase of approximately one billion of euros to help finance the acquisition, according to Il Sole24ore. He immediately raised his hand Cdp Networks, which owns 25,99% of the company, saying that it will participate in the increase pro rata with 260 million. Instead Snam, with a 13,5% share, has already said that it prefers to keep its financial exposure to Italgas unchanged. The intentions of the other shareholders remain to be seen: the US funds of Lazard (9,7%) and the entrepreneur Romano Minozzi (4,2%).
The final figure remains to be defined, but it will be above 5 billion
An final figure for the acquisition of the gas distribution operator, controlled by the infrastructure fund F2i and participated by Ardian and the Dutch company Apg, there is still no agreement, as also reported by the Sole24ore, because no agreement has been found on the prize that will have to be applied to Rab (4,9 billion), i.e. the net invested capital recognized for regulatory purposes, but it will still be more than 5 billion. Equita analysts underline that, if the slightly higher valuation of 5i ReteGas of 2 billion were confirmed, “it would be a premium on the Rab of around 5-7%, which we believe to be reasonable and in line with that of Italgas (8%)”. Italgas had already said that it will resort to a bridge loan guaranteed by JP Morgan to be refinanced through equity, debt or “equity like” instruments without affecting the rating level.
At this point, the announcement of the convocation of a board of directors to approve the acquisition and define its modalities is expected. At Piazza Affari, il Italgas title quoted this morning at 5,11 euros, down 1,06%, in a Ftse Mib down 0,57%. In the last month, however, it has gained 6,46%.
Italgas will take on debts, but will improve operating margin
Italgas had already successfully concluded the due diligence of 2i Retegas in mid-August. With the acquisition, Italgas, as communicated by the company itself, will take on 3,2 billion net debt of 2i Rete Gas. However, the operation will allow Italgas to increase its share by over 40%. operating margin gross current, equal to 1,2 billion in 2023. Between Italy and Greece, Italgas serves 1.983 municipalities and has a market capitalization of 4,1 billion, compared to 1,8 billion in revenues. Led by F2i, 2i Rete Gas has continued to aggregate local businesses, reaching 2023 million in revenues at the end of 815 with a profit margin of 546 million.
Italgas is already preparing to respond to the Antitrust
Such a significant union between two giants of methane distribution in Italy could turn on a light bulb for the antitrust. As a precaution, Italgas consultants have already developed simulations, according to which the antitrust remedies could involve the sale of 20-25% of the acquired activities.
