Monday, October 26, 2020 7:58 AM | Distribution of natural gas

Galp agrees GGND stake sale to Allianz Capital Partners

The agreement comprises the sale of 75.01% from Galp’s current 77.5% stake in Galp Gás Natural Distribuição. The agreed price of €368 million for the stake values the whole of GGND at c.€1.2 bn, or c.13x the estimated 2020 Ebitda.

Galp has reached an agreement with Allianz Capital Partners, acting on behalf of Allianz insurance companies and the Allianz European Infrastructure Fund, for the sale of 75.01% from its current 77.5% stake in Galp Gás Natural Distribuição, S.A. (GGND).

Based on the agreed price of €368 m for 75.01%, the implicit enterprise value (EV) for 100% of GGND, which holds nine regional gas distribution companies in Portugal, is c.€1.2 bn, equivalent to an EV multiple of c.13x over 2020 estimated Ebitda.

The transaction is subject to customary regulatory and third parties’ consents, with completion expected to take place during the first quarter of 2021.