Engie Completes Sale of 15% of TAG for R$ 3 Billion – Transaction Finalized

Written by Paulo Nogueira

Published on 28/12/2023 at 20:56

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Company Sold 50% of Gas Subsidiary to Canadian Fund CDPQ in Strategic Divestment.

Engie, one of the largest companies in the energy sector, announced today the sale of 15% of the Transportadora Associada de Gás (TAG) to the Caisse de Dépôt et Placement du Québec (CDPQ) for R$ 3 billion. With this transaction, the Canadian fund and the French group will have equal stake in the company.

Engie Brasil Energia, a subsidiary of Engie, currently holds 32.5% of TAG and after the transaction, will own 17.5%. GDF International, also belonging to the Engie group, will retain its 32.5% stake. Meanwhile, CDPQ will increase its share from 35% to 50% through the wholly-owned subsidiary CDP Groupe Infrastructures Inc.

Engie: Divestment and Asset Rotation

‘The partial divestment in TAG is an attractive option to implement an asset rotation, at a time when the Company has a solid pipeline of projects underway, without increasing pressure on the Company’s leverage, ratings, and payout’, explained Eduardo Takamori, Chief Financial Officer and Investor Relations Director at Engie Brasil Energia.

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Valuation of TAG: Engie Ahead

The negotiation represents a significant increase in the valuation of the transporter compared to 2020, when Engie bought the remaining 10% from Petrobras for R$ 1 billion at the time (R$ 1.4 billion adjusted).

Petrobras sold 90% of TAG in 2019 to Engie and CDPQ for R$ 8.6 billion at the time (R$ 11.2 billion adjusted).

TAG: Pipeline Infrastructure

TAG owns the largest transport network of natural gas in Brazil, with a pipeline infrastructure of approximately 4,500 km, located along part of the Southeast and Northeast coast of the country, as well as a segment linking Urucu to Manaus (AM) in the North region.

Source: EPBR

Engie Completes Sale of 15% of TAG for R$ 3 Billion – Transaction Finalized

Company Sold 50% of Gas Subsidiary to Canadian Fund CDPQ in Strategic Divestment.

Engie: Divestment and Asset Rotation

Valuation of TAG: Engie Ahead

TAG: Pipeline Infrastructure

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Engie Completes Sale of 15% of TAG for R$ 3 Billion – Transaction Finalized

Company Sold 50% of Gas Subsidiary to Canadian Fund CDPQ in Strategic Divestment.

Engie: Divestment and Asset Rotation

Valuation of TAG: Engie Ahead

TAG: Pipeline Infrastructure

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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