Spain's GN Completes Colombia Deal

Spanish utility Gas Natural (GN) said June 1 it completed the sale of its majority stake in a Colombian gas subsidiary to Canadian fund Brookfield. GN agreed November 2017 to divest its 59.1% controlling stake in gas distributor and retailer Gas Natural ESP for €482mn ($575mn), implying a value for the whole business of about €800mn.

On June 1, GN said the sale was completed in two parts: a 17.2% stake was initially sold between December 20-22, followed by the remaining 41.9% (or 15.465mn shares) was sold to Brookfield at 72,696 Colombian pesos (US$25.28) per ESP share, or $391mn, on Jun.1.

GN has reduced its exposure to the South American nation since its 85.38%-owned-electricity distributor Electricaribe was expropriated early 2017 by order of Colombia's state utilities regulator for having failed to collect bills and maintain the network over several years. GN also began arbitration proceedings against Colombia.

Also last year Brookfield increased its exposure to South American energy infrastructure in April 2017 when it completed the acquisition of Petrobras’ gas distribution business in Brazil - a 90% interest in Nova Transportadora do Sudeste, for $5.08bn - of which $4.23bn already paid, and $850mn to be paid in 2022.