Engie Sells 15% of TAG for R$ 3 Billion: CDPQ Increases Stake in the Company

Written by Paulo Nogueira

Published on 28/12/2023 at 19:53

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Company Sells 50% of Natural Gas Transporter to Canadian Fund CDPQ, Expanding Pipeline and Transport Network Projects.

Engie announced on Thursday (01/10) the sale of part of its stake in 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 now have the same share in the company.

Engie Brasil Energia, which currently holds 32.5% of TAG, will reduce its stake to 17.5%. Meanwhile, GDF International, also part of the Engie group, will maintain its 32.5% stake. CDPQ will increase its share from 35% to 50% through the wholly owned subsidiary CDP Groupe Infrastructures Inc.

TAG: Divestment Opportunity

An attractive option for implementing asset rotation is the partial divestment in TAG, at a time when Transportadora Associada de Gás has a solid pipeline of projects in implementation. This occurs without increasing pressure on the leverage, ratings, and payout of the company, explained Eduardo Takamori, Chief Financial Officer and Investor Relations Director at Engie Brasil Energia.

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Valuation of Transportadora Associada de Gás

The negotiation represents a significant increase in the valuation of Transportadora Associada de Gás compared to 2020. That year, Engie purchased the remaining 10% from Petrobras for R$ 1 billion at the time (R$ 1.4 billion adjusted).

Sale of Petrobras’ Stake in TAG

Petrobras sold 90% of TAG in 2019 to Engie and CDPQ for R$ 8.6 billion at the time (R$ 11.2 billion adjusted), marking a milestone in the history of sector negotiations.

Largest Pipeline Network in Brazil

TAG has the most extensive transport network for natural gas in Brazil, with a pipeline infrastructure of approximately 4,500 km. The network is located along part of the Southeast and Northeast coastlines of the country, in addition to a stretch connecting Urucu to Manaus (AM) in the North region, making it a significant asset in the natural gas transportation market.

Source: EPBR

Engie Sells 15% of TAG for R$ 3 Billion: CDPQ Increases Stake in the Company

Company Sells 50% of Natural Gas Transporter to Canadian Fund CDPQ, Expanding Pipeline and Transport Network Projects.

TAG: Divestment Opportunity

Valuation of Transportadora Associada de Gás

Sale of Petrobras’ Stake in TAG

Largest Pipeline Network in Brazil

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Engie Sells 15% of TAG for R$ 3 Billion: CDPQ Increases Stake in the Company

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