ENGIE Brasil Energia Sells 15% of Tag's Shares to CDPQ

Source Company Press Release
Company Caisse de dépôt et placement du Québec, ENGIE
Tags Country: Brazil, M&A: Corporate Deal, Deals, Midstream: Pipeline
Date December 28, 2023

ENGIE Brasil Energia, the largest 100% renewable energy company in Brazil, and CDPQ, a global investment group, today announced an agreement for the sale by  ENGIE Brasil Energia of a 15% stake in Transportadora Associada de Gás S.A. (TAG) to CDPQ.  

The transaction is valued at BRL 3.1 billion, approximately CAD 848 million, subject to usual price adjustments. As a result, ENGIE S.A. will maintain its 32.5% capital and  ENGIE Brasil Energia will reduce its participation from 32.5% to 17.5%, remaining linked to the TAG shareholders' agreement, bringing  ENGIE's total equity holdings in TAG to 50%, while CDPQ will hold the other 50%.

Following this investment, CDPQ will have increased governance rights, similar to those of ENGIE, with respect to TAG. This announcement follows the prior acquisition of a 90% shareholding in TAG by ENGIE and CDPQ, in June 2019. In 2020,  ENGIE and CDPQ completed the acquisition of the remaining shares.

"The partial sale of ENGIE Brasil Energia's stake in TAG is in line with our investment plan in new renewables power plants, as well as transmission lines, enabling the best allocation of capital in these two segments that are at the center of our growth strategy", said Eduardo Sattamini, CEO of  ENGIE Brasil Energia."

TAG has delivered strong performance since our initial investment about five years ago. Today's announcement is consistent with our infrastructure strategy: in this instance, reinvesting in a portfolio company with well-contracted assets, led by a seasoned management team, and in Brazil, a country where we intend to keep growing our portfolio in the next few years", said Emmanuel Jaclot, Executive Vice–President and Head of Infrastructure at CDPQ.

Financial close is expected by the end of January 2024, subject to closing conditions and approvals.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd