REN has acquired 42.5% of Electrogas, which holds a 165 kilometer gas pipeline in central Chile, for 172 million euros, as a part of the company’s strategic plan.
The main Portuguese manager of the transport infrastructure of electricity and natural gas REN has signed an agreement for the acquisition of 42.5% stake in the share capital of of Electrogas to ENEL Generacións Chile, for the price of 171.9 million euros.
Electrogas holds a 165.6 kilometers gas pipeline (102.9 miles) in the central area of Chile, being “a key pipeline in the country, connecting Quintero’s regasification terminal to both Santiago (the capital and Chile’s largest population center) and Valparaíso (one of the most important Chilean ports)”, according to the announcement sent by the company headed by Rodrigo Costa this morning to CMVM.
The acquisition fits REN’s international expansion plan and also the strategic plan approved for the three year period between 2015 and 2018, aiming to achieve “one of its medium and long-term objectives by acquiring a relevant stake in an asset which is part of a sector where REN has large experience and in a country with a stable and competitive economy”.
The purchase contract, performed through a company of REN’s group, is still subject to a set of conditions precedent, “in particular the non-exercise of a first offer-right by the other shareholders of Electrogas S.A”, is mentioned by REN in the same announcement.
"The acquisition will be performed through a company of REN’s group and is subject, under the terms of the agreement, to the completion of a set of conditions precedent, in particular the non-exercise of a first offer-right by the other shareholders of Electrogas S.A.”
Haitong perceives this deal as negative, since they are skeptical about “REN’s ability to create value outside of Portugal as we do not believe REN enjoys any competitive advantage and lacks the financial resources to build significant scale”, adding that although it is a large investment, they believe REN should maintain its investment grade.
REN’s shares were, last Friday, at 2.598 euros, meaning a 6.6% loss since the beginning of 2016.