The largest private energy and solutions company in the country, ENGIE announces that it has today, June 13, concluded the operation to acquire, with Caisse de d\u00e9pot et placement du Qu\u00e9bec (CDPQ), a 90% holding in TAG for an amount of approximately R$ 31.5 billion. In addition, an amount of app. R$ 2 billion is paid and will be used by TAG to prepay the entirety of its outstanding debt with BNDES. The acquisition is financed through a mix of equity and debt. Overall leverage is app. 70% and has been structured with 10 (ten) financing partners. Petrobras, the seller of the gas transmission company, will continue to have a 10% stake in the company.<\/p>\n
TAG has been acquired by a consortium comprising ENGIE, which will have a 58.5% participation in the asset (of which 29.25% through its local subsidiary ENGIE Brasil Energia), and global institutional investor CDPQ, which will have a stake of 31.5%.<\/p>\n
The company will be headed by engineer Gustavo Labanca, who takes over as Chief Executive Officer at TAG. In the group since 1998, Labanca was one of the leaders in the acquisition of TAG and has been ENGIE Brasil\u2019s Chief Business Development Officer since 2016.<\/p>\n
The transaction represents an important step in the unbundling process of the natural gas segment in the country and marks ENGIE\u2019s debut in this market in Brazil. Investments in the gas chain are a relevant part of the company\u2019s global strategy to be a leader in the energy transition towards a low carbon economy.<\/p>\n
\u201cIn addition to being a landmark transaction for ENGIE\u2019s within its over 23-year-long history in Brazil, this acquisition will drive rapid growth in the country, create new sources of revenue in a new business line and ensure the Group\u2019s sustainability in the long-term\u201d, pointed out Maur\u00edcio B\u00e4hr, CEO of ENGIE Brasil. TAG\u2019s acquisition is in line with ENGIE\u2019s goal of generating revenues from assets in regulated sectors \u2013 such as gas pipelines or transmission lines \u2013 based on long-term agreements providing a stable and solid business outlook.<\/p>\n
B\u00e4hr further highlights that the operation is also aligned with ENGIE\u2019s strategic objectives, which include growth in renewable power and infrastructure such as transmission lines and the gas value chain. For the CEO, TAG\u2019s acquisition bears a similarity to the acquisition of Gerasul. \u201cWhen we acquired Gerasul in a privatization auction in 1998, the company had an installed capacity of app. 3 thousand MW. Today, with 10 thousand MW, we are the largest private company in the sector. This illustrates our commitment to long-term development in Brazil and indicates the robustness of our investments\u201d.<\/p>\n
The executive also noted the importance of maintaining existing agreements within this transition phase to a new gas market – which has all that is necessary for expansion and generation of benefits for the country through the creation of jobs, sustainable income, further investments and enhancement of the tax take.<\/p>\n
Gustavo Labanca declares that just as in the case of ENGIE\u2019s acquisition of TAG, Brazil has the potential for major investments in infrastructure, the country being a priority target for the group worldwide. The business, he says, also permits ENGIE to diversify its local asset portfolio as well as bringing its international experience in competitive markets of natural gas to Brazil. ENGIE owns and operates more than 37 thousand kilometers of gas pipelines in the world, particularly in France, but also in Mexico, Chile, and Argentina. The Group also has participation in five regasification terminals, 22 gas storage units and 20 natural gas distributors, serving approximately 15 million consumers.<\/p>\n
\u00a0<\/strong><\/p>\n TAG New Board <\/strong><\/p>\n TAG new board, elected on June 13th<\/sup>, is formed by ENGIE\u2019s executives, Maur\u00edcio B\u00e4hr \u2013 which will be the chairman – Eduardo Sattamini, Raphael Barreau and Martin Lestang, by CDPQ\u2019s executives Louis Jean Chartier and Eduardo Edmond Farhat, and Petrobras executive Mauro Roberto da Costa Mendes.<\/p>\n \u00a0<\/strong><\/p>\n TAG<\/strong><\/p>\n TAG is a major natural gas transmission company in Brazil with a gas pipeline network of approximately 4,500 km, located along the seaboard of the Southeast and Northeast regions as well as a stretch linking Urucu to Manaus (AM), in the North region. The network also has 12 gas compression installations (6 proprietary and 6 subcontracted) and 91 delivery points.<\/p>\n \u00a0<\/em><\/strong><\/p>\n About ENGIE<\/em><\/strong><\/p>\n ENGIE is the largest private power producer in Brazil, operating an installed capacity of approximately 10GW in 60 power plants, which stands for about 6% of the country’s capacity. The Group has 90% of its installed capacity in the country coming from clean, renewable sources and with low emissions of greenhouse gases.<\/em><\/p>\n \u00a0The Group\u00a0also operates in the commercialization of energy in the free market and is among the largest companies in distributed photovoltaic generation. It has a complete portfolio in integrated solutions focused on cost reductions and improve infrastructures for companies and cities, such as energy efficiency, energy monitoring and management, contract management of power supply, besides public lighting, HVAC systems, telecommunication, security as well as urban mobility systems for smart cities. With 2,300 employees, ENGIE had in the country a turnover of R $ 9.3 billion in 2018.<\/em><\/p>\n \u00a0ENGIE\u00a0is a global reference in low-carbon energy and services. In response to the urgency of climate change, ENGIE\u2019s ambition is to become the world leader in the zero-carbon transition of its customers, in particular businesses and local authorities. The Group relies its key businesses (renewable energy, gas, services) to offer competitive turnkey solutions “as a service”. With 160,000 employees, customers, partners and stakeholders, ENGIE is a community of Imaginative Builders, committed every day to more harmonious progress.<\/em><\/p>\n \u00a0Turnover in 2018: 6.6 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris – World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).<\/em><\/p>\n <\/p>\n About CDPQ<\/em><\/strong><\/p>\n Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December<\/em>\u00a0<\/em>31, 2018, it held CA$309.5<\/em>\u00a0<\/em>billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit\u00a0<\/em>cdpq.com<\/em><\/a>, follow us on Twitter\u00a0<\/em>@LaCDPQ<\/em><\/a>\u00a0or consult our\u00a0<\/em>Facebook<\/em><\/a>\u00a0or\u00a0<\/em>LinkedIn<\/em><\/a>\u00a0pages.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Business marks the debut of ENGIE in the Brazilian gas market, a segment that is strategic for the group<\/p>\n","protected":false},"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-19847","imprensa","type-imprensa","status-publish","format-standard","hentry","tipo-release-holding-en"],"acf":[],"yoast_head":"\n