BlackRock begins its exit strategy from Naturgy

MadridBlackRock has begun an exit strategy in Naturgy. The US investment fund has just sold 7.1% of the gas company's share capital for €1.8 billion, as reported Wednesday night to the Spanish National Securities Market Commission (CNMV).

The New York-based company acquired its stake in the company in September 2024 when it acquired the fund manager GIPNaturgy, which controlled 20.6% of the Catalan energy company's share capital and was the third largest shareholder, behind only CriteriaCaixa (26.7%) and the CVC fund (20.7%), now becomes the fourth largest shareholder with approximately 12% of the share capital, behind the La Caixa Foundation holding company, CVC, and the Australian fund IFM. With this divestment, Naturgy gains more free float, that is, shares that are traded on the stock exchange (liquidity(in financial jargon), something the CNMV (Spanish National Securities Market Commission) asked it to correct, and which the gas company already began to do when it launched its own takeover bid for 10% of the share capital. According to the investment fund, the sale will be executed by JP Morgan bank "through an accelerated placement offer [of shares] among qualified investors."

But beyond Naturgy's strategy to achieve greater liquidity, BlackRock's move should be seen within the context of a long-term goal pursued by GIP: to exit as a shareholder in the company chaired by Francisco Reynés. In fact, the failed talks between CiteriaCaixa and the UAE-based multi-energy group TAQAfor a possible entry into the energy sector They were seeking to smooth the exit of that investor, but also of CVC (together they held more than 40% of Naturgy's share capital). Following this, CriteriaCaixa stated that it was keeping open avenues to explore other industrial partners, that is, with a long-term vision, a requirement that neither of the two funds met.

GIP wanted to divest

Before being acquired by BlackRock, the asset manager GIP, following its aggressive investment strategy (high returns in a given timeframe), had long been looking for a way to exit the gas company – the management team felt their time at Naturgy had come to an end – and, although BlackRock is usually characterized by its unified decision-making process, Wednesday's move confirms those intentions. Now, however, a game of musical chairs could also begin. Last February, Naturgy approved changes to its board of directors to respond to the demand from IFM, which has been steadily increasing its shareholding, for an additional director. Thus, the gas company went from twelve to sixteen directors. Besides IFM, the other seats are held by CriteriaCaixa, CVC, and BlackRock, which now has less influence than IFM.