The Diplomat
Naturgy has approved the split of the group into two listed companies that will encompass the regulated (gas and electricity infrastructures) and deregulated (generation and marketing) businesses, under the so-called Gemini project. Europa Press reports.
The proposal by the company’s Management Committee, which was unanimously approved by the Board of Directors on 1 February, is aimed at “strengthening Naturgy’s role in the energy transition and thus accelerating its strategic plan”, the company reported.
Naturgy’s chairman, Francisco Reynés, believes that Géminis will have “spectacular consequences for Spain, as it creates two national champions in terms of size and capitalisation, more than half of the companies on the Ibex 35”.
Thus, the energy company executive indicated that “two twin brothers” are being created with this spin-off of the group, with the aim of each of the two companies “focusing” on their respective activities.
Specifically, the current Naturgy has a company value of around 40,000 million euros, adding its current capitalisation of around 27,000 million euros and debt at the end of last year of almost 13,000 million euros, to be divided between the two new companies.
However, the final value after the process of each of them will depend on the final allocation of debt for each company to maintain its investment grade credit targets, Reynés said.
