Italgas plans 1 bln euro capital hike for 2i Rete Gas bid, paper says
Adds possible value of bid in par 3, Italgas comment in par 6, share performance in par 10
ROME, Sept 6 (Reuters) -Europe's biggest gas distributor Italgas IG.MI is planning to raisearound 1 billion euros ($1.1 billion) in capital tofinance the acquisition of its main domestic rival 2i Rete Gas, newspaper Il Sole 24 Ore reported on Friday.
While details of the deal are still in the works,"it is certain that the operation will bring with it a capital hike.... which, according to calculations by those working on the deal, is of around1 billion euros," the financial newspaper said.
In May Italgas CEO Paolo Gallo said he could not providedetails of the bid, which Il Sole 24 Ore said would be worth more than 5 billion euros.
A final offer is expected in the coming weeks, the report said, adding that the parties were assessing the premium to applyto 2i Rete Gas' 4.9 bln euros regulatory asset base (RAB), the value of investments made on the network, a key parameter for a company working in a regulated market.
CDP Reti, a unit of state lender CDP which owns 26% of Italgas, has already said it was in favour of the possible acquisition and was considering ways of backing the deal.
The paper said CDP Reti had already granted its full, pro-quota commitment to the capital increase.
Asked about the report, an Italgas spokesperson said the company never commented on rumours.
Italian infrastructure fund F2i owns 64% of2i Rete Gas. Dutch pension fund APG and buyout group Ardian together hold the remaining 36.1%.
A merger would be a major step in the consolidation of Italy's gas distribution market with 2i Rete gas - Italy's second-largest distributor - adding a 20% market share to Italgas' 35%, according to analysts.
In announcing the talks, Italgas said it would cover its financing needs through a bridge loan guaranteed by JP Morgan which may be refinanced through equity, debt or "equity-like" tools, with the aim of maintaining its current rating profile.
Shares in Italgas fell 0.3% by 0718 GMT in Milan against a 0.7% drop in the FTSMIB index .FTMIB.
($1 = 0.8998 euros)
Reporting by Giulia Segreti; Additional reporting by Francesca Landini; Editing by Kim Coghill and Valentina Za
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
