Spain’s government has approved Australian fund IFM’s partial takeover bid for energy group Naturgy with conditions to protect jobs, investment and the supply of gas and electricity, Energy Minister Teresa Ribera said on Tuesday.
IFM Global Infrastructure Fund offered to buy a 23% stake in Naturgy for 4.9 billion euros ($5.82 billion) in January.
After the takeover, IFM must maintain Naturgy’s investment plans and not exceed previously announced debt targets for at least five years, the minister told reporters after a weekly cabinet meeting.
IFM must also agree not to sell off any assets beyond those already agreed by the board and it cannot delist Naturgy for at least three years, Ribera said.
Naturgy pledged last week to invest 14 billion euros over the next five years, mostly to boost its renewable generation capacity and transform power and gas networks, in a bid to increase core earnings around 30% by 2025.
Describing the investment as a sign of foreign investors’ confidence in the Spanish economy, which is recovering from a devastating impact of the COVID-19 pandemic, Ribera said the government’s conditions should reassure workers and other national power companies.
“Employment is fundamental…especially in such a moment of transition,” she said.
Shares in Naturgy were largely unaffected by the announcement and were trading at 21.78 euros, 0.8% higher on the day and slightly below the offer price of 22.07 euros a share.
Source: Reuters.com