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The Spanish company Naturgy agreed to the sale of its stake in the electricity company Compañía General de Electricidad (CGE) to the Chinese company State Grid International Development Limited for more than 3 billion dollars.
This is 96.04 percent of the stake of the Spanish company that was sold and that, according to the energy company reported to the National Securities Market Commission (CNMV), represents an Enterprise Value (market price adding debts and discounting liquid assets ) from 4,312 million for 100 percent of CGE (5,098 million dollars).
🔵Notification in the electricity market: The Chinese company State Grid announced the purchase of 96% of CGE for 3 billion dollars.
State Grid is the largest electricity group in the world and CGE, remember, is controlled by the Spanish group Naturgy. @Cooperative pic.twitter.com/PasNByOazu
– Felipe Gallegos (@ FelipeGallegos7) November 13, 2020
Naturgy expects to complete the transaction, subject to regulatory approvals and competition authorization in Chile, before the end of February 2021, coinciding with the presentation of its 2020 results.
This agreement allows the company “to advance decisively in our transformation and represents an important first step in our asset rotation objectives that will allow us to be more ambitious in our investment and growth plans” and they stated that “this operation provides us flexibility strategic and greater financial capacity to grow “.
The energy group expects the operation to represent a net debt reduction of approximately $ 4.73 billion up to $ 12.77 billion, which will provide a greater financial capacity to address growth opportunities related to the energy transition.
CGE is the largest electricity distribution company in the country and supplies 45 percent of households. The purchasing company is a subsidiary of the Chinese State Grid Corporation of China, considered the largest utility company in the world.
Meanwhile, the CGE ratified the information and, in turn, it was also sent to the Commission for the Financial Market (CMF).
🔵The information was ratified by the CGE itself in an essential fact sent to the CMF. @Cooperative pic.twitter.com/ug4ooxGcXg
– Felipe Gallegos (@ FelipeGallegos7) November 13, 2020
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