ENGIE Brasil Energia, the largest 100% renewable energy company in Brazil, and CDPQ, a global investment group, 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.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.