Engie Brasil sells 15% stake in gas pipeline company TAG to Canada’s CDPQ By Reuters
© Reuters. FILE PHOTO: Engie’s logo is seen during the company’s annual shareholders’ meeting in Paris, France, April 26, 2023. REUTERS/Sarah Meyssonnier/file photo
Peter Frontini
SAO PAULO (Reuters) – Engie Brasil said on Thursday it had agreed to sell a 15% stake in pipeline company TAG to Canadian investment fund Caisse de Depot et Placement du Quebec (CDPQ) for 3.1 billion reais ($641 million). Yes.
CDPQ, Canada’s second-largest pension fund manager with C$424 billion ($320.6 billion) under management, will increase its stake in TAG to 50%, with Engie Brasil owning 17.5% and its French parent holding the remainder. We plan to increase it to. Indirect 50% equity.
In 2019, Engie and CDPQ jointly acquired a 90% stake in TAG from state-run oil company Petrobras for about $8.6 billion at the time, and acquired the remaining stake the following year.
TAG owns and operates a significant portion of Brazil’s natural gas pipelines, spanning approximately 4,500 km (2,800 miles) across 10 states in Brazil, with a committed natural gas processing capacity of 74.67 million cubic meters per day. .
The deal, which is expected to be completed by the end of January, subject to regulatory approval, values TAG’s stake at 20.8 billion reais ($4.3 billion), according to Engie Brasil.
Proceeds from the sale will be used to execute Engie Brasil’s investment plans in renewable energy and transmission lines “without increasing pressure on leverage, ratings and payouts,” Chief Financial Officer Eduardo Takamori said in a statement.
The company plans to hold a conference call Friday morning to discuss the transaction.
($1 = 4.8521 real)
($1 = 1.3225 Canadian Dollars)
