Gas Natural Fenosa to divest LPG business in Chile
Gas Natural Fenosa has today [18 December] authorised its subsidiary Gas Natural Fenosa Chile SpA (GNF Chile) to sign an agreement with the Perez Cruz family to split Gasco SA into two separate companies. One, Gasco GN, will be dedicated to the business of natural gas, while the other, which will continue to operate as Gasco SA, will handle the business of liquid petroleum gas (LPG).
Compania General de Electricidad SA (CGE) and the Perez Cruz family own 57% and 22%, respectively, of Gasco, while the remainder of the shares are in free float.
GNF Chile and the Perez Cruz family will, either directly or through related parties, launch takeover bids for the totality of the shares in Gasco GN and Gasco SA, respectively. The shareholders undertake to participate in the offer launched by the other party, as appropriate.
The value assigned to each Gasco SA share is CLP 2,100 [EUR 2.75], while Gasco GN shares will be worth CLP 3,200 each.
The transaction will allow Gas Natural Fenosa to focus on its gas distribution business and, in so doing, benefit from greater synergies.
Once the transaction is completed, Gas Natural Fenosa will consider the possibility of merging Gasco GN, CGE and CNF Chile.
[According to Gasco SA’s 2014 annual report, the company made a gross profit of CLP 254bn [EUR 333m] in the 12 months to 31 December 2014.]