Atlantia mulls share buyback, dividends after motorway sale

MILAN (Reuters) – Italy’s Atlantia is considering a share buyback of up to 2 billion euros ($2.4 billion) and the payment of 600 million euros in dividends next year after it agreed to part ways with motorway unit Autostrade per l’Italia.

The conglomerate controlled by the powerful Benetton family last week signed a deal with a consortium lead by Italian state lender CDP to sell its 88% stake in Autostrade.

The agreement will bring 8 billion euros into Atlantia’s coffers next year, ending a dispute prompted by the deadly collapse of a motorway bridge run by Autostrade in 2018.

In a statement on its future strategy, Atlantia said it could grab opportunities to invest in motorway and airport concessions and mobility infrastructures.

In addition, some of the proceeds from the Autostrade sale will go to reward investors, it said.

“The group is considering the proposal of a share buy-back of between 1 billion and 2 billion euros” to be launched next year, once the sale of Autostrade is completed, it said.

Shares in the group rose 5.5% at 0845 GMT, outperforming Milan’s blue-chip index, which was flat.

The dividend policy for the financial years from 2021 to 2023 envisages the distribution of around 600 million euros in the first year, with an estimated annual growth of between 3% and 5% in future years, Atlantia said.

“The announcement of the dividend policy and the buy-back are positive news, as they increase visibility regarding shareholder compensation and should encourage a recovery in the stock price,” said broker Bestinver.

Atlantia will also create a corporate venture capital fund open to new partners.

($1 = 0.8236 euros)

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