Blackstone and Enagás will close tomorrow the acquisition of 100% of the American Tallgrass Energy, one of the largest gas transportation network managers in the United States, after receiving the go-ahead from the firm’s board of directors at a time when that the operation was on the air as a result of the coronavirus pandemic. After months of negotiations, Blackstone and Enagás together with the sovereign wealth fund of Singapore (GIC) have decided to offer 22.45 dollars (20.72 euros) per share, raising their initial offer by 15% (the first was 19.5 dollars -17 .9 euros- per share), but 9% less than what the minority shareholders initially wanted.
In this way, an operation announced last summer, when the US energy company, will end. At that time, Enagás and GIC did not confirm their participation in the transaction, but the market took it for granted that they would join together with their partner, covering their share of the vehicle in which they participate in Tallgrass.
It should be remembered that last year to buy a controlling stake in the Tallgrass group for about 2,400 million dollars (2,214 million euros, at current exchange rates). This operation consisted of the purchase of 44% of the economic rights of Tallgrass and 100% of the political rights. In this way, the operation authorized today by the board of the American would mean the acquisition of 56% of the economic rights that this consortium did not yet control and the previous step for the delisting of the firm.
Internationalization of Enagás
The Spanish company’s participation in this transaction is part of a strategy to gain weight outside the national market, given the maturity of its presence in it. In fact, the United States is one of the company’s main growth objectives, which is also looking for opportunities in Europe and the Pacific Axis. The US is one of the countries with the greatest opportunities for growth in the midstream business. Furthermore, Tallgrass has a portfolio of future projects in this market in which Enagás could participate and also has a broad customer base and take or pay contracts, which will allow it to obtain a sustainable dividend and ebitda (gross operating result).
To date, this is the largest acquisition made by Enagás abroad since 2011 since, in addition to the amount invested for the acquisition, the Spanish company also committed to disbursing 300 million dollars (277 million euros, at current exchange rate) to continue boosting the growth of the US firm.
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