Italgas agrees to buy 22.5% of Portugal's Floene

MILAN, Oct 2 (Reuters) - Europe's largest gas distributor Italgas said on Friday it had agreed to acquire a 22.5% stake in Portuguese gas distribution company Floene from Japan's Marubeni and Toho Gas for around €120 million.

• Floene is Portugal's leading gas distribution operator, running a network that stretches 14,000 km (8700 miles), serving 1.1 million customers

• "The transaction would generate significant industrial value, delivering benefits for customers, local communities and all stakeholders, while supporting the long-term development of the gas distribution sector in Portugal," Italgas CEO Paolo Gallo said in the statement.

• The price paid implies a €530 million equity value and a €1.15 billion enterprise value for Floene, or about 10.9 times its earnings before interest, taxes, depreciation and amortisation in 2025, analysts at broker Intermonte said.

• Floene is 75% owned by Allianz Capital Partners.

• The deal gives Italgas access to the Portuguese market through a limited financial commitment, further expanding its international presence after Greece, Intermonte added.

• The closing of the transaction is subject to conditions, including regulatory approvals.

• Shares in Milan-listed Italgas were 1% higher by 0750 GMT

• Rothschild and SocGen advised Italgas on the deal

(Reporting by Elvira Pollina and Francesca Landini, writing by Alvise Armellini, editing by Giulia Segreti, Kirsten Donovan)