Czech utility CEZ said on Thursday it would acquire a 55.21% stake in gas distributor GasNet for 846.5 million euros ($926 million) from Macquarie Asset Management.
GasNet manages a 65,000 km long network of gas pipelines and holds around an 80% market share in the distribution of natural gas in the Czech Republic, distributing 66 terawatt hours (TWh) of gas annually.
“This acquisition of the country’s largest gas distribution system operator will further strengthen our position within the gas market,” CEZ Chief Executive Daniel Benes said.
“We are acquiring assets important for the transition of the Czech heat and power generation sector to hydrogen, while increasing the proportion of regulated business within our portfolio for the benefit of our shareholders.”
CEZ and private equity group CVC Capital Partners were the final two bidders for the stake, sources told Reuters in January.
Macquarie entered the business in 2013 and held GasNet in a consortium with British Columbia Investment Management Corporation (BCI) and Allianz.
It said on Thursday the terms of the transaction for its stake represented an enterprise value of approximately 4 billion euros for the GasNet holding group.
The deal is expected to close in the third quarter, Macquarie said. It is subject to approval from the European Commission and Czech Industry Ministry.
Source: Reuters.com