MADRID, Feb 20 (Reuters) - Spain's Naturgy

pledged on Thursday to raise dividends until 2027, reshape the

board of directors and increase its free float as it seeks to

boost investor confidence following recent ownership changes at

the power company.

Naturgy was the target of a failed takeover attempt last

year and saw the entry of BlackRock ( BLK ) into its capital.

More recently, Australian investment fund IFM, Naturgy's fourth

largest shareholder, moved to seek a second seat on the board.

The performance of Naturgy's shares has also been hit by its

limited free float - or shares available to the public for

trading.

The company said it would raise the dividend paid out of

2024 results to 1.60 euros ($1.67) a share, up from 1.40 euros

the previous year. Shareholders will see their remuneration

gradually increased to 1.90 euros a share in 2027.

And at the next general meeting on March 25, shareholders

will be asked to approve an expansion of the board to 16 members

from the current 12, a change that would allow the company to

meet IFM's request to have a second seat, it said in a

statement.

Under the plan, Spanish holding firm Criteria, which owns a

26.7% stake, would have four seats on the board, up from three

currently. BlackRock ( BLK ) - which got its stake through the

acquisition of investment fund GIP - and private equity firm CVC

each own more than 20%, and would both see their board

representation increase to three from two at present.

Naturgy posted a 4.3% decline in 2024 net profit of 1.90

billion euros, hit by lower gas and electricity prices. Analysts

polled by LSEG had expected 1.88 billion euros.

The company wants to buy up to 10% of its capital and then

place the shares on the market to increase its free float and

return to the main stock market indices, including MSCI.

If the plan moves ahead, it will pay 26.5 euros a share and

expect its main shareholders to participate in the offer in

proportion to their stake.

Naturgy shares traded 4.4% higher at 1013 GMT.

($1 = 0.9581 euros)