By Andrei Khalip and Greg Roumeliotis
LISBON/AMSTERDAM, Aug 19 (Reuters) - Galp Energia plans to sell its financial interest in three gas distribution companies, four people familiar with the matter said, a process that could earn it more than 500 million euros.
The Portuguese oil company wants to finance investment and reduce net cash outflow. It has cut its 2009 to 2013 capital expenditure plan by 17 percent to 4.3 billion euros.
Galp has put its 100 percent stake in Lisboagas, its 93 percent stake in Lusitaniagas and a 55 percent stake in Setgas in a special purpose vehicle and has sent 'teaser' documents to financial investors marketing it, the sources said.
Galp is willing to offer a minority participation in the vehicle, the sources said. The gas distribution companies had 2009 pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of 115 million euros, they added.
A source close the process said up to 45 percent of the vehicle's equity would be on offer, to raise cash for Galp's Brazilian oil projects.
The gas distribution assets collectively have a regulated asset base just exceeding 1 billion euros, two of the sources said. Were Galp to sell at a premium to the base, it could fetch more than half a billion euros, they added.
In a statement issued late on Thursday, Galp said it had mandated two investment banks to explore the sale of a minority participation in its natural gas distribution assets, in accordance with a funding scheme presented in May 2009.
Market sources said the sale would likely attract passive financial investors who like the regulated cashflows, but do not wish to be involved in the management of the assets. These could include pension funds and some infrastructure funds.
Shares in Galp closed up 1.3 percent compared with a 1.9 percent drop on the STOXX Europe 600 Oil & Gas index.
(Reporting by Andrei Khalip and Greg Roumeliotis; Editing by David Cowell, Jon Loades-Carter and Robert MacMillan) Keywords: GALP/SALE (greg.roumeliotis@thomsonreuters.com; +31 20 504 5005; Reuters Messaging: greg.roumeliotis.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LISBON/AMSTERDAM, Aug 19 (Reuters) - Galp Energia plans to sell its financial interest in three gas distribution companies, four people familiar with the matter said, a process that could earn it more than 500 million euros.
The Portuguese oil company wants to finance investment and reduce net cash outflow. It has cut its 2009 to 2013 capital expenditure plan by 17 percent to 4.3 billion euros.
Galp has put its 100 percent stake in Lisboagas, its 93 percent stake in Lusitaniagas and a 55 percent stake in Setgas in a special purpose vehicle and has sent 'teaser' documents to financial investors marketing it, the sources said.
Galp is willing to offer a minority participation in the vehicle, the sources said. The gas distribution companies had 2009 pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of 115 million euros, they added.
A source close the process said up to 45 percent of the vehicle's equity would be on offer, to raise cash for Galp's Brazilian oil projects.
The gas distribution assets collectively have a regulated asset base just exceeding 1 billion euros, two of the sources said. Were Galp to sell at a premium to the base, it could fetch more than half a billion euros, they added.
In a statement issued late on Thursday, Galp said it had mandated two investment banks to explore the sale of a minority participation in its natural gas distribution assets, in accordance with a funding scheme presented in May 2009.
Market sources said the sale would likely attract passive financial investors who like the regulated cashflows, but do not wish to be involved in the management of the assets. These could include pension funds and some infrastructure funds.
Shares in Galp closed up 1.3 percent compared with a 1.9 percent drop on the STOXX Europe 600 Oil & Gas index.
(Reporting by Andrei Khalip and Greg Roumeliotis; Editing by David Cowell, Jon Loades-Carter and Robert MacMillan) Keywords: GALP/SALE (greg.roumeliotis@thomsonreuters.com; +31 20 504 5005; Reuters Messaging: greg.roumeliotis.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.