Gas Natural SDG SA (GAS.MC) said Thursday that it has agreed to sell 20% of Gas Natural Distribucion, its gas distribution network in Spain, for 1.5 billion euros ($1.78 billion) to Allianz Capital Partners and Canada Pension Plan Investment Board.
The Spanish multinational will retain 80% equity interest in the distributor.
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As part of the deal, Gas Natural Fenosa, as the Spanish company is known, will also enter a long-term financing agreement with its distribution unit worth EUR6 billion, which the energy company says won't affect its capital structure or rating.
"It is expected that the operation will generate positive reserves in the company's net worth of around EUR1.04 billion," Gas Natural Fenosa said.
The deal, subject to regulatory approval, is expected to be completed before January 2018.
Gas Natural Fenosa said it may use the proceeds of the deal to support investments, manage debt or remunerate shareholders.
Gas Natural Distribucion is the biggest gas distribution network in Spain, covering more than 53,000 kilometers and serving more than five million supply points around the country, Gas Natural Fenosa said.
"We are excited to associate with two long-term investors of recognized standing in the infrastructure sector, and we will continue to invest further in the Spanish gas distribution network," said Gas Natural Fenosa Chief Executive Rafael Villaseca Marco.
This story was translated in part from a ?Spanish-language version initially published by EFE-Dow Jones, a partner of Dow Jones & Co.
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(END) Dow Jones Newswires
August 04, 2017 04:25 ET (08:25 GMT)