Italgas acquires from CPL Concordia 7 gas concessions in the South of Italy

Milan, 30 November 2017 – Italgas has signed today a binding agreement with CPL Concordia for the acquisition of a portfolio of 7 gas concessions in Southern Italy, for a total of 16 municipalities.
The overall valuation of the portfolio (enterprise value) has been set at 13 million Euros. At the closing of the transaction the price will be paid entirely in cash, net of debt. Completion is expected by March 2018 and is subject to certain pre-closing requirements.
In particular, the agreement covers the acquisition by Italgas of the following items:
  • 3 concessions for the methanisation of Barano, Lacco Ameno and Casamicciola on the island of Ischia;
  • one concession for the methanisation of the island of Procida;
  • one concession for the methanisation of the Calabria Basin 12 composed of 10 municipalities in the province of Reggio Calabria;
  • 2 concessions for the methanisation of the municipalities of Favara and Siculiana in the province of Agrigento.
Among the 7 concessions acquired, some are currently under construction and others will be developed in a short term; one of them – the one relating to the island of Procida – is close to coming on stream.
The total investment for the construction of the networks amounts to 95 million Euro, partly financed by public contributions. To date works already carried out amount to approximately 28 million Euro (gross of subsidies).
Once completed, the infrastructure will have a total length of more than 400 kilometres and will serve a potential pool of approximately 32,000 new customers.
The transaction is part of a larger context of collaboration between the two companies aimed at enhancing their respective assets and expertise in the construction and management of gas distribution networks and plants.

Italgas acquires 100% of Ichnusa Gas S.p.A.

Through the transaction, Italgas plays a pivotal role in the methanisation project of Sardinia

Milan, 8 November 2017 – Today Italgas has signed a binding agreement with CPL Concordia and Impresa Costruzioni Ing. Raffaello Pellegrini S.r.l. for the acquisition of 100% of Ichnusa Gas S.p.A., a holding company controlling 12 firms with 12 concessions for implementing and operating gas distribution networks in 81 Sardinian municipalities.

The overall valuation of Ichnusa Gas (enterprise value) has been set at €26.2m. At the closing of the transaction, the sum will be paid entirely in cash, net of debt.

On the day of the acquisition, 2 of the 12 concessions are in temporary operation with the first customers served with LPG. The remaining 10 refer to networks under construction and to be built, for an overall investment of over €170m which will be partially financed with regional public subsidies.

These infrastructures will be progressively completed in the course of approximately three years reaching, when fully operational, an extension of about 1,300 kilometres of networks for a potential pool of over 150,000 users.

The transaction concluded today marks the beginning of a pivotal presence of Italgas in Sardinia. Through the acquisition of Ichnusa Gas, which will serve 12 out of 38 pools of users defined by regional subdivisions, Italgas will cover about a third of Sardinia. The completion of the operation is expected within the first few months of 2018 and is subject to certain conditions precedent.

Paolo Gallo, CEO of Italgas, said:

“The transaction closed today is part of a wider collaboration between Italgas and CPL Concordia, aimed at enhancing the value of both companies’ gas distribution assets and their major competences relative to the construction and maintenance of networks and plants. Our entry into Sardinia – the only Italian region that does not benefit from an interconnected gas distribution infrastructure – signal Italgas’ willingness not only to play a consolidating role in an extremely fragmented sector, but also to promote the further methanization of the country system in view of the future construction of the infrastructures that will bring natural gas to the island. The acquisition of Ichnusa’s assets, one year after our return to the Stock Exchange, is additional to the transactions carried out in recent weeks, and confirms the strategic objectives announced in the 2017-2023 Business Plan”.

Italgas acquires 12 concessions in Campania and Basilicata from Amalfitana Gas

Milan, 2 November 2017 – Italgas and Amalfitana Gas have signed today a binding agreement to acquire a company branch regarding natural gas distribution activities in three ATEMs in Campania and Basilicata, two regions in Southern Italy. The agreement includes concessions, networks, plants and staff.

All the assets involved in the operation includes 12 concessions for a total of over 22,000 redelivery points and more than 300 kilometres of network.

The value of Amalfitana Gas branch assets (enterprise value) has been set at Euro 18.5 million. At the closing of the transaction, the sum will be paid entirely in cash.

The completion of the operation is expected by January 2018 and is subject to certain conditions precedent.

Paolo Gallo, CEO of Italgas, commented

The acquisition of these new assets, which includes as well the commitment to develop new networks in the ATEMs concerned, strengthens our robust presence in Southern Italy and in Campania in particular, and establishes the conditions to create value for shareholders and for the entire Italian gas distribution system. The operation concluded today with a historical operator such as Amalfitana Gas represents a further step in the sector’s consolidation process in which Italgas aims to playing a leading role and is part of the series of acquisitions announced to the market.

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