ENGIE Brasil Energia sells 15% of TAG's shares to CDPQ

MONTRÉAL and FLORIANÓPOLIS, SANTA CATARINA, Brazil, Dec. 28, 2023 /PRNewswire/ - ENGIE Brasil Energia, the largest 100% renewable energy company in Brazil, and CDPQ, a global investment group, today announced an agreement for the sale by ENGIE Brasil Energia of a 15% stake in Transportadora Associada de Gás S.A. (TAG) to CDPQ. 

The transaction is valued at BRL 3.1 billion, approximately CAD 848 million, subject to usual price adjustments. As a result, ENGIE S.A. will maintain its 32.5% capital and ENGIE Brasil Energia will reduce its participation from 32.5% to 17.5%, remaining linked to the TAG shareholders' agreement, bringing ENGIE's total equity holdings in TAG to 50%, while CDPQ will hold the other 50%.

Following this investment, CDPQ will have increased governance rights, similar to those of ENGIE, with respect to TAG. This announcement follows the prior acquisition of a 90% shareholding in TAG by ENGIE and CDPQ, in June 2019. In 2020, ENGIE and CDPQ completed the acquisition of the remaining shares.

"The partial sale of ENGIE Brasil Energia's stake in TAG is in line with our investment plan in new renewables power plants, as well as transmission lines, enabling the best allocation of capital in these two segments that are at the center of our growth strategy", said Eduardo Sattamini, CEO of ENGIE Brasil Energia.

"TAG has delivered strong performance since our initial investment about five years ago. Today's announcement is consistent with our infrastructure strategy: in this instance, reinvesting in a portfolio company with well-contracted assets, led by a seasoned management team, and in Brazil, a country where we intend to keep growing our portfolio in the next few years", said Emmanuel Jaclot, Executive Vice–President and Head of Infrastructure at CDPQ.

Financial close is expected by the end of January 2024, subject to closing conditions and approvals.

ABOUT TAG:

TAG owns and manages an important portion of Brazil's natural gas transportation assets, spanning over 4,500 kilometres and 10 states in the North, Northeast and Southeast regions, with a fully contracted natural gas handling capacity.

ABOUT ENGIE

ENGIE is a global reference in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerating the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions. Inspired by its purpose, ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers.

In Brazil, ENGIE, a leader in renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. With 2,400 employees, ENGIE has an installed capacity of approximately 10 GW, of which 100% is from renewable sources.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2023, CDPQ's net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

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SOURCE CDPQ