Engie Brasil Sells 15% Stake in Gas Pipeline Firm TAG to Canada's CDPQ for $641 Million
(Reuters) — Engie Brasil said on Thursday it had reached a deal to sell a 15% stake in natural gas pipeline firm TAG to Canadian investment fund Caisse de Depot et Placement du Quebec (CDPQ) for 3.1 billion reais ($641 million).
CDPQ, Canada's No.2 pension fund manager with C$424 billion ($320.60 billion) under management, will raise its stake in TAG to 50%, while Engie Brasil will own 17.5% and its French parent company will hold the rest, giving it an indirect 50% stake.
In 2019, Engie and CDPQ jointly acquired a 90% stake in TAG from state-run oil firm Petrobras for about $8.6 billion at the time, purchasing the remainder the following year.
TAG owns and operates a large part of Brazil's natural gas pipelines with some 4,500 km (2,800 miles) over 10 states in the country that have a firm contracted natural gas handling capacity of 74.67 million cubic meters per day.
The deal, which is expected to close by the end of January pending regulatory approvals, implies an equity value for TAG of 20.8 billion reais ($4.3 billion), according to Engie Brasil.
The proceeds of the sale will be used to implement Engie Brasil's investment plan in renewable energy and transmission lines "without increasing pressure on leverage, ratings and payout," Chief Financial Officer Eduardo Takamori said in a statement.
The company will hold a conference call on Friday morning to discuss the transaction.
($1 = 4.8521 reais) ($1 = 1.3225 Canadian dollars)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments