IFM Global Infrastructure Fund makes five billion euro offer for stake in Spanish utility Naturgy

FILE PHOTO: The logo of Spanish energy company “Naturgy” is seen in its headquarters in Madrid, Spain, October 9, 2018. REUTERS/Sergio Perez

MADRID (Reuters) – Investment fund IFM Global Infrastructure Fund said on Tuesday it had made a public offer for a 22.69% stake in Spanish power utility Naturgy for 5.06 billion euros ($6.13 billion).

The fund made a cash offer of 23 euros per Naturgy share, a 19.7% premium over Naturgy’s closing price on Monday. News of the offer pushed Naturgy’s share price up 15% at the market opening.

The fund said its offer is subject to obtaining at least 17% of all Naturgy shares.

IFM GIF is advised by Australian global fund manager IFM Investors, which is owned by Australian pension funds.

“IFM’s commitment to participating in the energy transition, together with its 25 years of expertise in the infrastructure sector across the globe and long-term investment philosophy, offers a strong reinforcement to Naturgy’s future development,” the fund said.

IFM GIF will finance the majority of the acquisition with equity commitments from its investors and the rest by a debt facility.

Naturgy shareholders Rioja Acquisition and GIP III Canary 1, which own a total of 41.4% in Naturgy, have decided not to hand over their shares to IFM GIF but will vote to give the fund the right to appoint members of Naturgy’s board.

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