ENGIE Brasil Energia sells 15% of TAG’s shares to CDPQ
Holding
ENGIE Brasil Energia (EGIE3), the largest 100% renewable energy company in Brazil, and CDPQ, a global investment group, both already partners in Transportadora Associada de Gás S.A. (TAG), today announced an agreement to sell 15% of ENGIE Brasil Energia’s stake to CDPQ. The main goal is to promote EGIE3’s asset rotation and focus attention on the Company’s investment plan in the electric power generation and transmission.
As a result, ENGIE S.A. will maintain its 32.5% capital and ENGIE Brasil Energia will reduce its participation from 32.5% to 17.5%, remaining linked to the TAG shareholders’ agreement, bringing ENGIE’s total equity holdings in TAG to 50%, while CDPQ will hold the other 50%. The transaction is valued at BRL 3,1 billion, subject to usual price adjustments.
“The partial sale of ENGIE Brasil Energia’s stake in TAG is in line with our investment plan in new renewables power plants, as well as transmission lines, enabling the best allocation of capital in these two segments that are at the center of our growth strategy”, said Eduardo Sattamini, CEO of ENGIE Brasil Energia.
“TAG has delivered strong performance since our initial investment about five years ago. Today’s announcement is consistent with our infrastructure strategy: in this instance, reinvesting in a portfolio company with well-contracted assets, led by a seasoned management team, and in Brazil, a country where we intend to keep growing our portfolio in the next few years”, said Emmanuel Jaclot, Executive Vice President and Head of Infrastructure at CDPQ.
Completion of the financial operation is expected by the end of January 2024, subject to the conditions defined by the Purchase and Sale Agreement.
This announcement follows the prior acquisition of a 90% shareholding in TAG by ENGIE and CDPQ, in June 2019. In 2020, ENGIE and CDPQ completed the acquisition of the remaining shares.
ENGIE Brasil Energia’s Growth in Renewables & Transmission Lines
The investment plan in new renewable power plants and transmission lines is part of the ENGIE Group’s strategic objectives in the country. “Since 2016, ENGIE Brasil Energia has invested more than BRL 20 billion in renewable energy assets and transmission lines. For the coming years, the Company foresees more than BRL 13 billion in investments”, said Maurício Bahr, Chairman of the Board of Directors of ENGIE Brasil Energia.
The Company will add 2 GW of installed capacity in renewable generation over the next two years: the Santo Agostinho Wind Complex, is already in an advanced phase of implementation and will have a total installed capacity of 434 MW when completed; the Assuruá Wind Complex, which will total 846 MW of installed capacity, starting its commercial operation gradually in the second half of 2024; and the Assu Sol Photovoltaic Complex, which will reach 752 MW of installed capacity, with full commercial operation scheduled for the second half of 2025.
Furthermore, in 2023 the Company began mobilizing teams to implement the Asa Branca project, with 1,000 km of transmission lines connecting the States of Bahia, Minas Gerais and Espírito Santo.
Recently, ENGIE Brasil Energia signed a contract for the acquisition of five solar photovoltaic (PV) plants in the Northeast (Bahia and Ceará) and the Southeast (Minas Gerais), with a total capacity of 545 MWac in operation, from Atlas Energia Renovável do Brasil S.A. The transaction is currently ongoing, depending on the conditions set out in the Purchase and Sale Agreement for its closing.
About TAG:
TAG owns and manages an important portion of Brazil’s natural gas transportation assets, spanning over 4,500 kilometers and 10 states in the North, Northeast and Southeast regions, with a fully contracted natural gas handling capacity.
About CDPQ:
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2023, CDPQ’s net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.
CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.
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).