{"id":110204,"date":"2021-01-26T10:51:25","date_gmt":"2021-01-26T10:51:25","guid":{"rendered":"https:\/\/precoinnews.com\/?p=110204"},"modified":"2021-01-26T10:51:25","modified_gmt":"2021-01-26T10:51:25","slug":"fund-run-by-australian-pension-investors-seeks-stake-in-spains-naturgy","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/fund-run-by-australian-pension-investors-seeks-stake-in-spains-naturgy\/","title":{"rendered":"Fund run by Australian pension investors seeks stake in Spain's Naturgy"},"content":{"rendered":"
MADRID (Reuters) – Investment fund IFM Global Infrastructure Fund offered on Tuesday to buy a 22.7% stake in Spain\u2019s Naturgy for 5.06 billion euros ($6.13 billion), sending the power group\u2019s shares soaring 16% to lead gainers on Madrid\u2019s bourse.<\/p> The cash offer of 23 euros per share represented a 19.7% premium over Naturgy\u2019s closing price on Monday, according to calculations by the fund\u2019s manager IFM Investors, which is owned by Australian pension funds.<\/p>\n Naturgy\u2019s earnings have been hit over the past year as the coronavirus pandemic crimped demand for fuel, dragging down gas prices already depressed by a global glut of super-chilled liquefied natural gas (LNG).<\/p>\n Formerly known as Gas Natural, Naturgy rebranded in 2018, reshuffled management and set about cutting costs and moving out of a number of countries including Colombia and Italy.<\/p>\n It is now looking to expand its presence in the fast-growing renewable energy generation sector. It bought a solar energy developer in the United States this month.<\/p>\n Naturgy said it first heard of the offer with IFM\u2019s statement to the Spanish stock exchange on Tuesday, and had hired investment bank Citi and Freshfields law firm.<\/p>\n IFM said its offer is subject to obtaining at least 17% of all Naturgy shares and said it would adjust its price downwards if the company made any pay-outs such as dividends.<\/p>\n The fund said it did not plan to take control of Naturgy.<\/p>\n Two major shareholders, Rioja Acquisition and GIP III Canary 1, which own a total of 41.4% in Naturgy, have decided not to hand over their shares, but will vote to give the fund the right to appoint members of Naturgy\u2019s board.<\/p>\n Naturgy\u2019s biggest shareholder is La Caixa banking foundation which owns a 24.4 % stake through its holding company Criteria, the parent company of Caixabank.<\/p>\n IFM will finance the majority of the acquisition with equity commitments from its investors and the rest through debt.<\/p>\n The fund said in a statement it sought long-term investments for 470 different entities worldwide and focuses on assets that bring economic and social benefits.<\/p>\n ($1 = 0.8258 euros)<\/p>\n