ENGIE and CDPQ to acquire remaining 10% of TAG in Brazil
ENGIE announces that its joint bid with Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, has been successful in acquiring the remaining 10% stake in Transportadora Associada de Gás S.A. (TAG), as part of the divestment process conducted by Petrobras. The closing value of the transaction is BRL 1.0 billion, approximately EUR 160 million. With this acquisition, ENGIE’s total equity holdings in TAG increase to 65% (of which 32.5% is held by ENGIE Brasil Energia) while CDPQ will hold the remaining 35%. After completion of this deal, ENGIE will keep the current equity consolidation method. In addition, ENGIE expects a net debt impact of approximately EUR 105 million related to this transaction.
This acquisition follows the prior acquisition by Engie and CDPQ, in June 2019, of a 90% shareholding in TAG. TAG’s capacity is fully contracted on the basis of ship-or-pay clauses with an average residual duration of 11 years and will be regulated afterwards.
Mauricio Bähr, CEO of ENGIE Brasil said: “We have been operating in Brazil for almost 25 years with a long-term investment focus. This acquisition allows us to invest further in an asset we know, capitalizing on our expertise in networks, in a key country for ENGIE.”
TAG is the largest natural gas transporter in Brazil with a gas pipeline infrastructure of approximately 4,500 km, located along the seaboard of the southeast and northeast regions as well as a further stretch connecting Urucu to Manaus (AM). The network represents 47% of the country’s entire gas infrastructure, and has further development potential such as network extension, additional connections, gas storage development and green gases transport.
About CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2019, it held CA$340.1 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).