ENGIE: GRTgaz to buy Elengy, deal will cut ENGIE’s debt

ENGIE, Société d’Infrastructures Gazières and GRTgaz have signed a preliminary memorandum of understanding to pursue negotiations for the acquisition of Elengy -- a wholly owned subsidiary of ENGIE operating LNG terminals -- at 100% by GRTgaz.

For the shareholders of GRTgaz and Elengy, this planned acquisition responds to both European gas infrastructure challenges and market player needs. The market is currently subject to infrastructure consolidation where very large players are integrating several gas chain businesses, in particular LNG terminals and gas transmission networks.

“GRTgaz’s acquisition of Elengy, bolstering GRTgaz with high quality LNG assets, would thus enhance France’s position as a well-regulated market at the crossroads of international LNG trading,” ENGIE said in a press release.

As provided by applicable regulations, the planned acquisition will also be submitted for clearance to the French Energy Regulatory Commission (CRE) and to the governing bodies of the companies involved. The transaction would have no impact on the legal status of the two companies, GRTgaz and Elengy, nor any consequences for their employees.

The transaction will not modify the current shareholding of GRTgaz (75% ENGIE, 25% SIG) following a capital increase reserved to SIG and a contribution of shares owned by ENGIE. The transaction will reduce ENGIE’s net debt by €200 million.

Elengy is Europe’s second largest LNG terminal operator with three terminals, a regasification capacity of 21.25 Bcm/y of natural gas, and a workforce of 376 employees. GRTgaz is Europe’s second largest natural gas transmission network operator with over 32,000 km of pipelines and 3,000 employees.

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