L’Italgasa leading company in Italy in the distribution of gas whose first shareholder is Cassa Depositi e Prestiti, has announced that it has started a negotiation time to detect 100 percent of 2i Rete Gas, its main competitor on the reference market. At this stage, according to what Italgas itself understands, the accounts of the company targeted by the purchase offer are being examined, at the end of which a binding offer will be made for its shareholders. Please remember that specific reference is made to the infrastructure fund F2ithe French of Ardian and the Dutch of Apg. The purchase transaction was estimated between 4 to 5 billion of Euro.
Italgas wants to buy 2i Rete Gas
At the end of the consultation phase of the accounts of 2i Rete Gas, Italgas will be able to carry out abinding offer to the shares of this company and, in the event of an agreement, the Italian company will meet its financial needs thanks to a bridge loan guaranteed by JP Morgan. The refinancing, we read in a note from Italgas, can take place with a combination of capital, debt or hybrid instruments. The stated objective is to keep Italgas’ current credit rating unchanged. Translated, this means that Italgas could proceed with a capital increase and the subsequent issue of convertible bonds or to the placement of bonds. As for costs, the purchase of 100 percent of 2i Rete Gas was estimated at 4-5 million.
Italgas and 2i Rete Gas, the risks in the event of an acquisition
L’purchase of 2i Rete Gas from Italgas it would entail, as is easy to imagine, serious risks Antitrust. The union, in fact, would defeat the competition market, leading Italgas to have no real rivals in the distribution of methane to families and businesses in Italy. These dangers, however, have already been taken into consideration by Italgas which, in the event of a successful acquisition of the competitor, would proceed with the sale of some of its activities.
To understand how the scenario in the supply of methane in Italy could change, it is necessary to look at the numbers. Italgas it serves 1,983 municipalities between Italy and Greece and has a stock market capitalization of 4.2 billion. Its revenues are equal to 1.8 billion, with a gross operating margin of 1.2 billion. 2i Gas networkhowever, at the end of 2023 it reached 815 million in turnover, with a profit margin of 546 million.
The IPO of 2i Rete Gas doesn’t stop
The period in which Italgas’ offer arrives is certainly not coincidental. Precisely in this phase, in fact, 2i Rete Gas is involved in the process ofIPO (Initial public offering) which will lead to it being listed on the stock exchange. This procedure is handled by Goldman Sachs, Bnp Paribas, Intesa Sanpaolo, Unicredit and Mediobanca. The shareholders of 2i Rete Gas, however, published a note in which they underlined that the exclusivity period granted to Italgas does not stop the listing process which was approved by the Board of Directors of 2i Rete Gas last February 28th. According to rumors published by Corriere, “the placement would include the sale of shares for 600 million, based on an overall valuation of the group of 5 billion which includes approximately 3 billion in debt”.
