Naturgy has reached an agreement to sell its 96.04% stake in its Chilean electricity grids subsidiary, Compañía General de Electricidad en Chile (CGE), to the state company China State Grid International Development Limited (SGID) for a total purchase price ('equity value') of 2,570 million, set in euros and payable in cash at the close of the transaction.
The transaction involves an enterprise value (EV) for 100% of CGE of 4,312 million and it is expected that the Pre-tax capital gains for Naturgy reach approximately 400 million euros.
The closing of the transaction is subject to relevant regulatory approvals and competition authorization. Naturgy awaits complete the transaction before the end of February 2021, provided the conditions mentioned above are met.
Energy has risen sharply, 7.77%. Ángel Pérez, Renta 4 analyst, explains to Bolsamanía that the operation is "very positive". "They pay 15 times EBITDA," he says.
Naturgy's pro forma net debt for the transaction stands at 10.8 billion, 3.9 billion less than as of September 30, 2020, based on the deconsolidation of CGE's debt and pre-tax cash income from the transaction. The proforma net debt / EBITDA ratio for the last twelve months would therefore be 2.9 times (compared to 3.6 times reported) as of September 30, 2020. In addition, the contribution to EBITDA of Europe and the rest of the world (excluding Latin America) increases to 66% from 61% at nine months 2020.
Naturgy has indicated that this transaction "demonstrates its ability to execute transactions that maximize value for its shareholders. In addition, it represents an important step in the transformation of the company and its future asset portfolio. The greater financial capacity obtained from the transaction will support growth opportunities linked to the energy transition that create value ".
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