Enagás’ $590 Million Acquisition of a Minority Interest in Tallgrass Energy

Latham & Watkins LLP represented Enagás in the transaction and advised the company on the CFIUS clearance process.

Enagás S.A., a Spanish public energy company, entered into an agreement with affiliates of Blackstone Infrastructure Partners and Singapore’s GIC to acquire a 10.93% indirect stake in US midstream company Tallgrass Energy (TGE).

Founded in 2012, Tallgrass Energy owns three inter-state gas pipelines.

The investment is structured in such a way that Blackstone will keep to itself a majority stake, GIC will hold a minority stake while Enagás will have a 24.90% stake in the holding company at the time of closing of the deal.

After the completion of the deal, the Spanish energy company will increase its stake in the holding company by a further 3.52% for a sum of around $83m, subject to completion of certain preceding conditions.

In addition, Enagás received clearance from the Committee on Foreign Investment in the United States (CFIUS) on July 24, 2019, in connection with this transaction.

CFIUS concluded that there were no unresolved national security issues with respect to the transaction.

With this CFIUS clearance, Enagás obtained all applicable regulatory approvals to consummate the proposed investment, and the transaction closed on July 30, 2019.

Latham & Watkins CFIUS team was led by Washington, D.C. partner Steven Croley (Picture), with Washington, D.C. associates Bridget Reineking and Noel Ottman. The corporate deal team was led by Houston partners Jeffrey Muñoz, Debbie Yee, and William Finnegan, and Washington, D.C. partner Brian Miller, with associates Kevin Richardson and Ryan Lynch in Houston, Javier Martí-Fluxá in Madrid, and William Hackett in Washington, D.C.

Involved fees earner: Steven Croley – Latham & Watkins; William Finnegan – Latham & Watkins; William Hackett – Latham & Watkins; Ryan Lynch – Latham & Watkins; Javier Martí-Fluxá – Latham & Watkins; Brian Miller – Latham & Watkins; Jeffrey Muñoz – Latham & Watkins; Noel Ottman – Latham & Watkins; Bridget Reineking – Latham & Watkins; Kevin Richardson – Latham & Watkins; Debbie Yee – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Enagas SA;

Author: Ambrogio Visconti