Italgas agrees to buy 22.5% of Portugal's Floene (updated)
UPDATE 1-Italgas agrees to buy 22.5% of Portugal's Floene Adds analyst comments in bullet points 3-5, Italgas shares
MILAN, Oct 2 (Reuters) - Europe's largest gas distributor Italgas said on Friday it had agreed to acquire a 22.5% stake in Portuguese gas distribution company Floene from Japan's Marubeni 8002.T and Toho Gas 9533.T for around €120 million.
Floene is Portugal's leading gas distribution operator, running a network that stretches 14,000 km (8700 miles), serving 1.1 million customers
"The transaction would generate significant industrial value, delivering benefits for customers, local communities and all stakeholders, while supporting the long-term development of the gas distribution sector in Portugal," Italgas CEO Paolo Gallo said in the statement.
The price paid implies a €530 million equity value and a €1.15 billion enterprise value for Floene, or about 10.9 times its earnings before interest, taxes, depreciation and amortisation in 2025, analysts at broker Intermonte said.
Floene is 75% owned by Allianz Capital Partners.
The deal gives Italgas access to the Portuguese market through a limited financial commitment, further expanding its international presence after Greece, Intermonte added.
The closing of the transaction is subject to conditions, including regulatory approvals.
Shares in Milan-listed Italgas were 1% higher by 0750 GMT
Rothschild and SocGen advised Italgas on the deal
(Reporting by Elvira Pollina and Francesca Landini, writing by Alvise Armellini, editing by Giulia Segreti, Kirsten Donovan)