Off grid

11 Feb 2022 By George Hay Follow @gfhay

The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.

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Spanish power and gas company Naturgy will split into two separately listed entities, with one focused on infrastructure and the other on power generation and marketing, the company said on Feb. 10.

Both groups will keep the same shareholder structure. The split, which is planned for later this year, will not affect jobs or the group’s asset portfolio, Chief Executive Francisco Reynés said.

Reynés said it was too early to say how the company’s roughly 25 billion euros ($31 billion) in market value and 13 billion euros of net debt would be shared between the two entities.

Naturgy’s shareholders include Australian fund IFM, private equity firms CVC and GIP, and Criteria Caixa, the investment holding company that is the main shareholder of Caixabank. IFM, which recently took a 12% stake, will gain a board seat after the next shareholder meeting.

Naturgy shares closed up 1.7% on Feb. 10. They were down 8.8% at 25.87 euros by 0940 GMT on Feb. 11.

Context News

Spanish power and gas company Naturgy will split into two separately listed entities, with one focused on infrastructure and the other on power generation and marketing, the company said on Feb. 10.

Both groups will keep the same shareholder structure. The split, which is planned for later this year, will not affect jobs or the group’s asset portfolio, Chief Executive Francisco Reynés said.

Reynés said it was too early to say how the company’s roughly 25 billion euros ($31 billion) in market value and 13 billion euros of net debt would be shared between the two entities.

Naturgy shares closed up 1.7% on Feb. 10. They were down 8.8% at 25.87 euros by 0940 GMT on Feb. 11.

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