(Bloomberg) -- Italgas SpA said its new plan targets nearly €3 billion ($3.3 billion) in profit by 2030 after the gas distributor sealed a deal to buy rival 2i Rete Gas.
The Italian company said in a statement Monday that it sees earnings before interest, taxes, depreciation and amortization reaching €2.8 billion by 2030, and it confirmed a 65% dividend payout with an increased floor to 5% annual growth.
Italgas shares rose as much as 2.5% in Milan trading, touching their highest level since June 2023, and later erased gains.
In the wake of the 2i Rete Gas deal, which will make Italgas Europe’s largest distribution network operator, the company will invest €15.6 billion, an increase of €7.5 billion from the previous plan, according to the statement.
Investments will target distribution, strengthening its presence in the water sector, and better energy efficiency, the company said.
Italgas confirmed a planned investment of €1 billion in Greece via subsidiary Enaon, an increase of €100 million compared with the previous plan.
Italgas confirmed on Saturday that it signed a deal to buy shares in 2i Rete Gas held by F2i SGR SpA and Finavias. The accord values 2i Rete Gas at an enterprise value of €5.3 billion.
The purchase is expected to close in the first half of 2025, pending regulatory approval. Italgas will fund the transaction through bridge financing underwritten by JPMorgan, the company said.
The loan will be syndicated to banks and will also be refinanced through a rights issue amounting to €1 billion.
(Updates with shares in third paragraph.)
©2024 Bloomberg L.P.