Brookfield’s Acquisition of 59.1% in GAS NATURAL S.A. ESP for €482 million

Baker McKenzie and Posse Herrera Ruiz advised on the deal

Through Gas Natural Distribución Latinoamérica, GAS NATURAL FENOSA has agreed the sale of its 59.1% stake in GAS NATURAL S.A. ESP to the Canadian fund Brookfield Infrastructure (“BROOKFIELD”), a Colombian company dedicated to gas distribution and retail supply, by means of a process that will also allow minority shareholders to benefit from the offer at the same price as its shares.

The operation is estimated to have a positive accounting impact on GAS NATURAL FENOSA’s results in 2017 of approximately 350 million euros after tax. This figure demonstrates the Colombian company’s growth as, since its acquisition in 1997, its number of clients has increased from 400,000 to almost 3 million, and its distribution network has grown from 5,000 km to currently over 22,000 km.

The economic conditions of the operation imply a 100% enterprise value of 1.005 billion euros, representing an equity price for 59.1% of 482 million euros. Consequently, this translates into approximately 7.3 times the EBITDA and 13.8 times the net profit, in view of the last 12 months.

Brookfield Infrastructure forms part of Brookfield Asset Management, a global asset management company with around 250,000 million dollars in assets under its management. The company is listed on the New York and Toronto stock exchanges and owns and operates long-term assets in the utilities infrastructure, transport, energy and communication sectors in the Americas, Asia-Pacific and Europe.

GAS NATURAL FENOSA is a multinational leading company in the energy sector, a pioneer in gas and electricity integration, and operates in over 30 countries. The group provides services to nearly 22 million customers on five continents and has an installed power generation capacity of 15.5 GW and a diversified mix of technologies.

Baker McKenzie advised Brookfield Infrastructure with Juan de la Rosa (Picture), Juan Felipe Vera, Carolina Pardo, Jaime Trujillo, Ciro Meza and Alejandro Mesa, and associates Laura Estrada, Natalia Villalba, Jorge Valencia, Juan Diego Saldarriaga, Antonio Perry, Adriana Combatt, Paola González, Mariana Villegas, Maria Montejo, Isabella Ariza and Juan Camilo Mariño.

Posse Herrera Ruiz advised GAS NATURAL FENOSA with Jaime Cubillos (Picture), Mariana Posse, Emilia Arango, Lina Vélez, Maria Fernanda Flórez and Santiago Osorio.

 

Involved fees earner: Jaime Cubillos – Posse Herrera Ruiz; Emilia Arango – Posse Herrera Ruiz; Lina Vélez – Posse Herrera Ruiz; Santiago Osorio – Posse Herrera Ruiz; Mariana Posse – Posse Herrera Ruiz; María Fernanda Flórez – Posse Herrera Ruiz; Juan Manuel de la Rosa – Baker & McKenzie; Juan Vera Cardona – Baker & McKenzie; Alejandro C. Mesa-Neira – Baker & McKenzie; Juan Diego Saldarriaga – Baker & McKenzie; Laura Gonzalez – Baker & McKenzie; Laura Estrada Vásquez – Baker & McKenzie; María Carolina Pardo Cuéllar – Baker & McKenzie; Mariana Villegas Mendoza – Baker & McKenzie; Jaime Trujillo Caicedo – Baker & McKenzie; Ciro Meza – Baker & McKenzie; Jorge Valencia – Baker & McKenzie;

Law Firms: Posse Herrera Ruiz; Baker & McKenzie;

Clients: Gas Natural Fenosa; Brookfield Infrastructure Partners LP;

 

Avatar

Author: Ambrogio Visconti.