Spain's Gas Natural sells Colombian distribution unit to Brookfield
MADRID (Reuters) — Spain’s Gas Natural said late on Friday it had agreed to sell the 59.1% stake it owns in its Colombian retail distribution unit to infrastructures fund Brookfield Infrastructure for $568 MM.
Brookfield will launch a takeover offer for the remaining 48.9% of the firm at the same price, valuing the company at 1 B euros, including debt, or 7.3 times its earnings before interest, tax, depreciation and amortization.
Gas Natural will book a one-off capital gain of 350 MM euros on the sale, enabling it to reach its year-end target of a net profit of between 1.3 B and 1.4 B euros, it said in a notice to Spain’s stock market regulator.
Gas Natural also said it remained committed to having a dialogue with the Colombian authorities that avoids the arbitration procedure for investment protection that it initiated after the Colombian regulator ordered the liquidation of its affiliate Electricaribe citing risks from lack of payment and quality of service.
Reporting by Julien Toyer; Editing by Andrew Bolton
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