REGGIO EMILIA (ITALPRESS) – Ireti, fully owned by Iren, has finalized the acquisition of 40% of Iren Acqua’s share capital held by F2i Sgr through its funds, as stated in a note.
Iren Acqua is currently 60% owned by Ireti, a company within the Iren Group responsible for integrated water services in 39 municipalities of the Genovese ATO, serving over 750,000 equivalent residents with a network of approximately 2,750 km.
This operation allows Ireti to obtain 100% ownership of the company and will lead to the merger of Iren Acqua into Ireti itself, resulting in significant cost rationalization and improved operational efficiency. Additionally, from a financial perspective, this move will reduce payments for third-party dividends and increase the group’s net profit.
Iren Acqua has very favorable financial ratios, with profitability exceeding the sector average and a solid equity structure. The expected EBITDA at the end of 2024 is estimated to be between 110 and 120 million euros, while the estimated net financial position is between 180 and 200 million euros.
The agreement for the acquisition of the 40% share capital includes an initial payment of 100 million euros upon closing and a remaining portion of 182.5 million euros deferred over 4.25 years, with an interest rate of 4.5% per annum compounded. This operation falls among the strategic options made financially viable by the issuance of a hybrid bond, allowing the replacement of third-party equity with equity instruments.
“The Iren Acqua operation strongly aligns with Iren’s industrial vision to grow within infrastructure networks,” says Luca Dal Fabbro, Executive Chairman of Iren. “It confirms the Group’s effectiveness in seizing inorganic growth opportunities while further emphasizing the importance of regulated businesses. The acquisition has strong industrial rationale due to its value and the significant potential in the national water sector, given the pressing need for infrastructure investments. This operation will also reduce third-party dividend payments and increase the group’s net profit. It has positive economic and financial impacts tied to the lower cost of Group debt compared to dividends paid to minority shareholders and will boost earnings per share benefiting our shareholders.”
“Today, we have further strengthened Iren’s strategic role in the water cycle, where we are among the leading national operators, underscoring the importance of managing water and energy networks in the Group’s strategy,” says Gianluca Bufo, CEO of Iren. “The operation will enable us to concentrate water cycle activities in the Genoese area within a single company, extracting important synergies from corporate rationalization and the integrated management of network services in a basin served by Iren Acqua of approximately 750,000 residents. We will continue to develop the water cycle through a significant investment plan and by seizing opportunities for inorganic growth.”
“Today marks the conclusion of a decade-long journey with a strategic operator like F2i and opens a new phase for Iren Acqua,” says Moris Ferretti, Executive Vice President of Iren. “This will allow us to make investments in new purification capacity and reduce network losses, enabling us to enhance the quality of services provided to users, leveraging the expertise and knowledge of the territory developed by our operational staff over the years.”
– photo press office Iren –
(ITALPRESS).
