Spain-headed Enagás and the Belgian company Fluxys have reached an agreement to sell jointly and in equal parts to FS Gas Transport AB, an indirectly wholly owned subsidiary of First State Investments managed European Diversified Infrastructure Fund II (First State), their total stake in the Swedish company Swedegas AB for SEK 1.024 billion (≈ EUR 96 million) each. The transaction is subject to compliance with the conditions precedent for this type of deals.
According to a statement, Enagás and Fluxys have accepted the purchase offer submitted by First State, owner of part of the Swedish gas distribution network. The sale of Swedegas would represent a return exceeding 10 percent for Enagás in terms of IRR after tax. This return is not subject to the evolution of the exchange rate since Enagás financed 100 percent of the investment in local currency.
The transaction fits within the strategy announced by Enagás, which considers the possibility of rotation of some assets outside Spain, in order to undertake potential new investments.
Swedegas owns Sweden’s entire high-pressure gas pipeline network and is the operator of the Swedish Gas System. It was acquired by Enagás and Fluxys in March 2015, each with a 50 percent share in the company.
About Enagás and Fluxys
Spain-headed Enagás is the leading company with the largest number of LNG terminals and regasification capacity in Europe and has a presence in Mexico, Chile, and Peru. Enagás is also one of the shareholders of the Trans Adriatic Pipeline (TAP) project. The company is certified as a Transmission System Operator (TSO) by the European Union (EU) and owns more than 12 000 km of gas pipelines, four strategic storages, and eight regasification plants. In Spain, Enagás is the Technical Manager of the Gas System and has developed the country’s key gas infrastructures. Fluxys is a Belgium-based, fully independent gas infrastructure group. The company is a major gas transit operator and its offering combines gas transmission, gas storage and terminalling of liquefied natural gas (LNG). Present across Europe, Fluxys’ partnerships also includes ownership in an LNG bunkering ship, the Interconnector and BBL pipelines linking the UK with mainland Europe, the Dunkirk LNG terminal in France, the NEL and TENP pipelines and the EUGAL pipeline project in Germany, the Transitgas pipeline in Switzerland and the TAP pipeline from Turkey to Italy under construction to bring gas coming from Azerbaijan and potentially other sources to Europe.