Gas Natural announces sale of 20 pct of its Argentine subsidiary
Gas Natural has announced to the Stock Market Regulator in Spain (CNMV) the sale of 19.6% stake in Argentina to Chemo Group, a local partner led by Leandro Sigman. The agreement was closed for US$56mm (around €36 million).
Gas Natural will maintain a controlling 50.4% stake in the subsidiary under the deal, as well as the marketing and supply areas of the subsidiary, and will continue to own its operations. The final transaction depends on the result of due diligence and the definitive execution of the acquisition agreement.
According to the company’s statement, Chemo Group "is a multi-national, Argentina-based company with offices in 24 countries operating in different fields". Gas Natural assures that "it has always looked to build local partnerships with the goal of increasing our presence in the countries where we operate".
Gas Natural announced last week the acquisition of Union Fenosa, the details of which were agreed upon in record time. The Spanish gas company will invest 16.753 millions of euros to buy the energy company in February, 2009. To that end, besides closing the financing of the agreement through a loan with ten banks in one day, Gas Natural announced that it would sell its stakes in Indra and Cepsa.
Repsol, the main shareholder
The decision taken by Gas Natural is in line with the strategy outlined by Repsol, the main shareholder of the utility company and whose intention is to remain in the company once the merger is completed. Recently, the oil company accomplished a similar transaction upon the sale to a local partner, the Petersen Group of part its stake in its Argentine subsidiary YPF.
