Allianz Capital Partners and Canada Pension Plan Investment Board, through its wholly owned subsidiary, CPP Investment Board Europe S.à r.l., have signed an agreement with Gas Natural Fenosa to acquire a 20 percent minority equity interest in its gas distribution business in Spain.
The sales price was €1.5 billion ($1.77 billion).
The equity investments for Allianz Capital Partners and CPPIB are €600 million and €900 million ($707 million and $1.1 billion), respectively. Allianz Capital Partners and CPPIB are long-term infrastructure investors with significant experience investing in regulated utilities, including the gas sector, and with a strong track record of partnering with strategic investors in infrastructure businesses.
GNDB is the largest gas distribution network in Spain with more than 5.3 million connection points and serving some 1,100 municipalities. It serves a geographically diversified residential and industrial customer base across Spain, providing its customers with access to a cost-efficient, reliable and environmentally friendly source of energy. Post transaction, GNF will continue to own an 80 percent equity shareholding in GNDB, which will remain a core part of GNF’s portfolio.
Completion of the transaction, which is subject to certain regulatory approvals, is expected by January 2018.