By Cecilia Butini
Naturgy Energy Group SA said Friday that it has entered into an agreement to sell its 96.04% equity shareholding in its Chilean subsidiary Compania General de Electricidad SA for a total purchase price of 2.57 billion euros ($3.03 billion).
The company said the beneficiary of the sale is Chinese company State Grid International Development Ltd., and that the purchase price is fully payable in cash upon completion of the transaction.
The enterprise value of the transaction for 100% of Compania General de Electricidad is EUR4.31 billion, Naturgy said, adding that its pretax capital gains are expected to be approximately EUR400 million.
Completion of the transaction is expected prior to the end of February 2021, according to the Spanish company.
Naturgy added that the transaction initiates a transformation process within the company, and that it will hold a Capital Markets Day in February 2021 when it releases annual results.
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(END) Dow Jones Newswires