Brookfield takes majority stake in Colombian gas distributor

Through Gas Natural Distribución Latinoamérica, Gas Natural Fenosa has agreed the sale of a 59.1% stake in its Colombian gas distribution business Gas Natural SA ESP to the Canadian fund Brookfield Infrastructure.

The deal is estimated to have a positive impact on Gas Natural Fenosa’s 2017 results of approximately €350 million (US$355,19 million) after tax.

Since 1997, Gas Natural SA ESP has increased its number of clients from 400,000 to almost 3 million, and its distribution network has grown from 5,000 km to over 22,000 km.

The deal has been achieved for a 100% enterprise value of €1.005 billion, representing an equity price for the 59.1% stake of €482 million (US$ 570,67), approximately 7.3 times the EBITDA and 13.8 times the net profit of the last 12 months.

Rafael Villaseca, Chief Executive of Gas Natural Fenosa, stated:

“The operation comes within the process of reviewing the assets included in the company’s current Strategic Plan.

The sale is taking place at a time in which international investment funds are particularly interested in these types of assets.”

“We will remain open to a friendly negotiation regarding Electricaribe, provided that adequate regulatory conditions are ensured.”