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De Jul 2018 a Jul 2020
By Patrick Costello
Engie SA (ENGI.FR) projects that its profits will increase over the next few years due to its acquisition of a 90% stake in Transportadora Associada de Gas SA via a consortium, the French company said Monday.
TAG is the largest natural gas transmission network owner in Brazil, with 4,500 kilometers of gas pipelines that make up 47% of the country's entire gas infrastructure, Engie said.
The French electric-utility group said it expects the acquisition to contribute an additional 130 million euros ($147.8 million) to earnings in 2021 at the current operating income level, before increasing by more than 10% at a compound annual growth rate between 2021 and 2024.
The transaction should contribute EUR100 million to net recurring income group share level in 2021, it said. That contribution is then forecast to rise by over 15% at a compound annual growth rate between 2021 and 2024.
The transaction's impact on net debt is expected to be EUR1.6 billion, it said.
A consortium made up of Engie, Engie Brasil Energia SA (EGIE3.BR) and the Canadian pension fund Caisse de Depot et Placement du Quebec won the bidding process for the TAG stake in early 2019, Engie said.
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(END) Dow Jones Newswires
June 24, 2019 04:07 ET (08:07 GMT)
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