Blackrock exits Naturgy's capital for almost 3 billion

Madrid / BarcelonaThe GIP fund, owned by the US investment giant BlackRock, has decided to exit its stake in Naturgy. The group has announced an accelerated placement on the market of 11.4% of the gas company's capital, which, at Monday's closing price, amounts to more than €2.955 billion. With this operation, carried out by Goldman Sachs and JP Morgan, the restructuring of the energy company's capital is complete. Criteria, the investment arm of La Caixa, remains in first place, with more than 25.98% of the shares, followed by CVC, with 18.8%, and the Australian fund IFM, with 15.16%. The transaction is being carried out through a rapid process whereby the placement banks solicit orders from large institutional investors within a few hours to fully subscribe the shares. Last December, GIP III Canary, the fund holding the stake, already had reduced its stake in Naturgy through an initial accelerated placement of approximately 7.1% of the capital. It then sold at a price of €24.75 per share. Following this operation, the vehicle held 11.4% of the gas company's capital, subject to a commitment to maintain (lock-up(in financial jargon) of 90 days. This Monday, Naturgy was one of the few stocks that rose on the Spanish stock exchange, with a 1.37% increase to €26.70.

Reorganization of the company's capital

With the December sale, the fund pocketed some €1.7 billion – to which is now added the €2.955 billion from the sale announced this Monday – and already marked a first step in the transformation of BlackRock's role in Naturgy's capital, from a stake of close to 20% in previous years to a more financial position. A few weeks ago, Naturgy sought to project an image of stability, intending to focus on the business and strategy, rather than on the company's governance. It did so by restructuring the board of directors and extending the term of its executive chairman, Francisco Reynés, until 2030. Reynés is one of the few executives in the Ibex 35 who wields absolute power within his company.

Market sources say that this operation increases the percentage of capital that fluctuates on the stock exchange (free-float), one of the company's aspirations; and the risk of downward pressure disappears (overhang(In financial jargon) regarding the stock, because there is no longer a price at which the market expects GIP to sell, as it has already divested all its capital. GIP-Blackrock had retained two seats on the board of directors, leaving a third vacancy. Now the board will have to be restructured.