{"id":116469,"date":"2021-06-15T10:07:06","date_gmt":"2021-06-15T10:07:06","guid":{"rendered":"https:\/\/fin2me.com\/?p=116469"},"modified":"2021-06-15T10:07:06","modified_gmt":"2021-06-15T10:07:06","slug":"atlantia-mulls-share-buyback-dividends-after-motorway-sale","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/atlantia-mulls-share-buyback-dividends-after-motorway-sale\/","title":{"rendered":"Atlantia mulls share buyback, dividends after motorway sale"},"content":{"rendered":"
MILAN (Reuters) – Italy\u2019s 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\u2019Italia.<\/p> 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.<\/p>\n The agreement will bring 8 billion euros into Atlantia\u2019s coffers next year, ending a dispute prompted by the deadly collapse of a motorway bridge run by Autostrade in 2018.<\/p>\n In a statement on its future strategy, Atlantia said it could grab opportunities to invest in motorway and airport concessions and mobility infrastructures.<\/p>\n In addition, some of the proceeds from the Autostrade sale will go to reward investors, it said.<\/p>\n \u201cThe group is considering the proposal of a share buy-back of between 1 billion and 2 billion euros\u201d to be launched next year, once the sale of Autostrade is completed, it said.<\/p>\n Shares in the group rose 5.5% at 0845 GMT, outperforming Milan\u2019s blue-chip index, which was flat.<\/p>\n 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.<\/p>\n \u201cThe 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,\u201d said broker Bestinver.<\/p>\n Atlantia will also create a corporate venture capital fund open to new partners.<\/p>\n ($1 = 0.8236 euros)<\/p>\n