PGGM, EDF and China’s Gingko Tree Investment acquire Red Madrileña de Gas
According to sources, Dutch pension manager PGGM, China’s Gingko Tree Investment Ltd. and France's EDF will acquire Madrileña Red de Gas, a Spanish natural gas distributor owned by Galp Energia and Morgan Stanley infrastructure unit.
The team is one of the three consortia that had entered in the second round to acquire the gas firm. The two other teams are: Canada Pension Plan Investment Board (CPPIB) - Allianz - Abu Dhabi Investment Authority (ADIA) and Public Sector Pension Investment Board (PSP Investments) - Arcus Infrastructure.
Madrileña Red de Gas has about 5,350 kilometers of pipelines, serving 842,600 households. It is Spain’s third largest gas distribution network by number of supply points.
The firm’s EBITDA in 2014 was €149.2 million (US$160 million) and it has €775 million (US$830.8 million) in outstanding debts.
The value of the transaction is estimated at €1.2 billion (US$1.29 billion). Citi is responsible for selling the company, which is majority owned by Morgan Stanley.
In 2010 Gas Natural sold Madrileña Red de Gas to Galp Energia and Morgan Stanley for a total of €800 million, after regulators forced the sale. Morgan Stanley owns the distribution assets and Galp Energia owns the supply businesses.
During this month we have reported about several oil & gas deals globally:
- ArcLight Capital Partners acquires Petroleum Products Corporation - USA
- Gazprom acquires 49% stake in Dung Quat refinery - Vietnam
- First Reserve and Blackrock acquires 45% stake in Los Ramones II Projects - Mexico
- Royal Dutch Shell acquires British BG Group - UK
- iCON Infrastructure Partners II acquires Service Terminal Rotterdam v.o.f. (STR) - Netherlands
