The consortium of investors headed by Macquarie Asset Management (MAM) has started the process of selling GasNet, the largest gas distributor in Czechia, daily Hospodarske noviny (HN) writes today, referring to four sources from financial and advisory circles and the energy sector.
The valuation of the company may amount to the higher tens of billions of crowns, according to HN.
GasNet supplies natural gas to households and companies throughout the Czech Republic except Prague and the South Bohemia Region. It manages 65,000 kilometres of gas pipelines, and has more than 2.3 million customers.
According to HN, the sale process is to be managed from London, where the consortium of investors led by Australia’s MAM is based. The consortium also includes British Columbia Investment Management Corporation and Allianz Capital Partners. All firms have declined to comment on the sale, HN writes.
The consortium bought the majority of 50.04 percent in GasNet in 2019 from German energy group RWE for EUR1.8bn (CZK 46.2 bn at the time). RWE valued the company at EUR3.6bn (at the current exchange rate, about Kc85bn at the current exchange rate). Macquarie had previously held slightly less than half of GasNet. It entered the company in 2013, acquiring 35 percent, and gradually increased its stake. Currently, the consortium is the sole owner of the company.
According to Petr Dedecek, director of Patria Corporate Finance, the start of asset sales in the Czech Republic can be explained by the end of the investment horizon of Macquarie’s main fund. “Last year they also sold gas assets in Austria and Germany,” he told HN.
The price for GasNet may be slightly below 10 times the operating EBITDA (earnings before interest, taxes, deprecitation and amortisation) figure of above CZK 9 bn, according to Dedecek.
The outcome of the transaction will be closely watched by the state, as the sale of such strategic assets is subject to approval under the foreign investment screening law, the daily notes.
GasNet’s net profit fell by 35 percent yr/yr to CZK 1.89 bn last year, The company’s revenues also fell, down by 7 percent yr/yr to CZK 14.4 bn. According to the company, the consequences of the conflict in Ukraine and the related energy crisis had a significant impact on its performance.
Source: Hospodarske noviny and CTK
