(Alliance News) - Ascopiave Spa and Iren Spa announced on Tuesday that they had finalized the transaction to rationalize some assets within the natural gas distribution service, following the fulfillment of contractually stipulated conditions precedent.

Specifically, the transaction involved the transfer by the Ascopiave group to the Iren group of the entire share capital of Romeo 2 Srl, a company newly established by the Ascopiave group, into which the business branches related to the management of the concessions of the Savona 1 and Vercelli ATEMs owned by Edigas Spa, an Ascopiave group company, were previously transferred, for about 19.000 PDR; the transfer by Iren in favor of Ascopiave of its shareholding of about 20 percent of the capital of Romeo Gas Spa, a company owning concessions in Northern Italy for a total of 126,000 PDR; the waiver by the Iren group to acquire from Romeo Gas the business branches related to the management of concessions in the ATEMs Piacenza 1 and Pavia 4; and the transfer by Romeo Gas in favor of the Iren group of the business branches related to the management of concessions in the ATEMs Parma and Piacenza 2 with about 3,200 PDR.

Again, it provided for the waiver of the right to acquire from the A2A Spa group the business unit related to the management of the gas transportation network located in the province of Pavia currently held by Retragas, the latter upon the fulfillment of the condition for the acquisition-that is, the prior reclassification from transportation network to distribution network; the acquisition from Retragas will therefore be finalized by the Ascopiave group.

Overall, the asset rationalization transaction resulted in the recognition of a monetary adjustment of EUR3.6 million in favor of the Ascopiave group based on the different expected profitability.

"The transaction just concluded highlights the willingness of the two companies to rationalize gas distribution concessions by pursuing their strategic plan based on the territorial continuity of the assets," both companies explained.

Ascopiave's stock closed Tuesday down 1.1 percent to EUR2.66 per share while Iren's lost 0.2 percent to EUR1.66 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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