MILAN (Reuters) – Shareholders in Italgas, Europe’s biggest gas distributor, approved on Thursday a 1.02-billion-euro ($1 billion) rights issue to fund the acquisition of rival 2i Rete Gas, the company said on Thursday.
In a shareholders’ meeting with 79.43% of the share capital represented, more than 99% voted in favour of the capital increase.
Italgas agreed in October to buy 2i Rete Gas for 5.3 billion euros, marking a significant move in the consolidation of the country’s gas distribution sector.
The right issue will allow Italgas to limit the increase in net financial debt with the aim to keep the current credit rating, the group said in a statement.
Italgas is rated BBB+ by Fitch and Baa2 by Moody’s, according to the company’s website.
($1 = 0.9039 euros)
(Reporting by Francesca Landini, editing by Alvise Armellini)
