Naturgy Agrees To Sell BlackRock 50% Of The Vehicle That Will Control Its Participation In Medgaz

naturgyIFM offers to buy up to 22.69% of Naturgy's capital at €23 per share

Naturgy will incorporate BlackRock’s Global Energy & Power Infrastructure Fund (GEPIF) as a financial partner in its purchase of 34.05% of Medgaz. To this end, it has sold 50% of the vehicle which will control its participation in the underwater gas pipeline running between Spain and Algeria.

GEPIF will acquire the afore-mentioned percentage for the same price as Naturgy bought 34.05% of Medgaz from Mubadala. On Thursday, the company chaired by Francisco Reynés, filed a statement with this information with the Stock Market Regulator (CNMV).

Last October, the energy company acquired 34.05% of the gas pipeline for 445 million euros through a vehicle which could incorporate a financial partner, as has happened with GEPIF. This vehicle will be financed with a non-recourse loan of 260 million euros to optimize its capital.

GEPIF will be able to participate in the vehicle once the transaction with Mubadala is closed. This is pending the approval of the competition authorities over the coming weeks.

If the option is exercised, Naturgy and GEPIF will each control 50% of the vehicle that will hold 49% of Medgaz (after the acquisition of 34.05% from Mubadala, plus Naturgy’s current stake of 14.95% in Medgaz at the same price.) Overall, the transaction should not have implied any cash outflow for Naturgy. 

The energy company has highlighted that this operation is in line with its 2018-2022 Strategic Plan. This focuses on investments which generate value for the shareholder, with stable, predictable and low-risk cash flows. This is “demonstrated by the fact that 100% of the pipeline’s capacity is already contracted with ‘send or pay’ type agreements in EUR until 2031, with solid solvency counterparts.”

 

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