TAQA, the Emirates giant, confirmed yesterday that it is negotiating with CVC and GIP, and in agreement with La Caixa, an offer for 100% of Naturgy. Because if an agreement is reached for CVC and GIP to sell, and given that they account for more than 40%, TAQA would have to make a takeover bid for 100%.
After the confirmation of the negotiations, the National Securities Market Commission (CNMV) suspended Naturgy from trading, which resumed hours later with strong rises given that the market is talking about a cash takeover bid at around €27 per share.
The 87% of Naturgy’s capital is divided between CriteriaCaixa, which controls 26.7%; the CVC fund with 20.7%; GIP with 20.6%; IFM with 15% and the Algerian Sonatrach with 4.1%.
The two foreign funds CVC and GIP would be willing to sell their stakes, which together amount to 41.3%, although the current price does not convince them. CVC and GIP entered Naturgy’s shareholding in 2019 and 2016. Since then, CVC has received around €1.8 billion in dividends and GIP around €1.2 billion.
CriteriaCaixa has openly acknowledged that talks with the investment group are at a preliminary stage, although it has already been confirmed that TAQA is willing to launch a takeover bid for 100%. The talks with CriteriaCaixa are aimed at reaching a shareholders’ agreement in which the Spanish entity will have the management, as Criteria will not take part in the takeover bid. The Australian fund IFM, with 15% of the shares, will not participate either.
The future of Naturgy, Spain’s leading gas company and third largest electricity company, is of concern to the government, which has the right of veto as it is a strategic company and which, through its Minister of Economy, Carlos Cuerpo, said yesterday in Washington that they do not even rule out taking a stake in the company: “In Spain we have a very clear vision of the need to protect our strategic interests and we also have the regulatory instruments to do so”.
