Share moves Nature open a door new game power counterweights in the group. In a company that already has a complex management due to the different profile of its major shareholders (a group with industrial professions and three investment funds as the core), a scenario that has not yet been clarified due to double risk is expected. The shock came to the capital in just a week.
On the one hand, investment giant BlackRock is preparing to dive into the Spanish energy company by completing the acquisition of the GIP fund, which is the company’s third largest shareholder with 20.6 percent. On the other hand, Australian fund IFM is strengthening its capital and continues to buy shares until it exceeds the 15% level; This is approaching the threshold that would give him the right to pass from one to two executives at the main Spanish gas company. It is the third largest electricity company in the country.
Right now CriteriaCaixa The investment holding company of the LaCaixa Foundation is the main shareholder with 26.7% of the capital, followed by the British investment fund. CVCUS infrastructure fund with 20.7% GIPAustralia with 20.6% IFM now at 15%. Partners with very different profiles and different strategic visions on how to increase the value of the energy company, but managed to create a balancing play of forces to stabilize the group.
Peace between partners
The current balance of power agreement between shareholders was agreed two years ago. The Australian IFM entered the company with a turbulent partial takeover bid that failed: the offer aimed to take a stake of between 17% and 23% of the capital, but remained at 10.8%. An operation that caused a head-on collision with the LaCaixa Foundation’s investment holding company, CriteriaCaixa, and even increased its involvement, making it more difficult for IFM to purchase shares.
After months of tension, the partners signed peace. Naturgy reorganized its board at the beginning of 2022 to appoint IFM with a director and give Criteria an extra seat that will have three representatives. CVC and GIP each have two directors, and there are also three independent directors and an executive director (Francisco Reynés, the group’s chairman).
By expanding the share package, IFM He begins to approach the threshold that will enable him to realize his initial desire, and He claims to have a second advisor at Naturgy. If the Australian fund manager owns more than 16.7 per cent of the energy company’s capital, it will in principle have the right to add another seat to the group’s governing body.
It is stated from the IFM circle that the strengthening of its participation is only a reflection of its interest and confidence in Naturgy and its intention to continue investing in Spain, and for the time being it distracts it from a possible demand to increase its presence in the future. on the company board. IFM ensures that its mission is permanence and that its investments are “thought of in terms of decades, not years” and that investments in Naturgy move in the same field.
The IFM held its global meeting in Madrid last October and invited Naturgy president Francisco Reynés to attend the event as one of the heroes of the event, which was interpreted as a sign of support for the manager’s management after the controversy over the failure. Attempt to appoint a ‘number two’ to share tasks in the energy sector a few months ago. IFM’s senior representatives met directly with the president of Pedro Sánchez in La Moncloa those days, confirming their interest in continuing to invest in Spain.
BlackRock’s ‘politicized’ takedown
The consolidation of IFM in Naturgy’s capital was known to be in the middle of controversy due to another shareholder move in the group, which additionally fueled the creation of political turmoil. BlackRock, the world’s largest investment fund manager, announced last week that it acquired the GIP investment fund for more than $11.4 billion. An operation with direct consequences for Naturgy, as GIP is one of its major shareholders with a 20.6% stake.
The government acknowledges that it has already analyzed BlackRock’s operation for its implications in a strategic sector such as energy to determine whether it is affected by the special protection of the ‘anti-takeover shield’ erected by the government to protect companies during the pandemic. acquisitions by foreign investors in key sectors. The operation has already become the target of political controversy, with the government’s analysis process having just begun. Sumar and Podemos publicly demanded that the Executive prevent giant BlackRock from taking control of 20% of Naturgy.
The government already had an active role in controlling IFM’s access to Naturgy’s capital. The Government of Pedro Sánchez approved the takeover of the Australian fund with certain conditions, stipulating the acquisition as investment support in strategic renewable projects for Spain, the maintenance of the company’s headquarters and the management of businesses in Spain and a prudent policy in distribution. Dividend distribution to retain a significant part of the workforce in Spain or to keep the debt ratio at an investment grade level. The IFM is also obliged not to support the delisting of the company.
Gemini and their partners
Naturgy, the former Gas Natural Fenosa, launched what it aims to be a historic reinvention at the beginning of 2022. The group unexpectedly announced its decision to promote its split into two publicly traded companies; one will group the company’s regulated businesses (gas and electricity networks), the other will take over all liberalized activities (with conventional production facilities and renewable energy sources, as well as marketing business). Project Gemini was the name the company gave to the division.
The military occupation of Ukraine and the worsening of the energy crisis delayed the project, and the Spanish Government’s outright rejection of the operation halted the project. The group insists it has not given up on the split plan, and last July announced it was relaunching to continue exploring alternatives for its implementation. Naturgy defends the expediency and industrial sense of splitting into two companies to increase the company’s value.
However, the commentary on the Gemini Project in financial markets has always described the move as a way to facilitate the exit of some large shareholders. The GIP fund became a shareholder in Naturgy seven years ago (purchasing 10% in Repsol and another 10% in Criteria), and the CVC and March family duo did so almost six years ago (keeping the last 20 shares) in Repsol ‘s still own) thus completing the investment cycle that participation in such funds usually has.
Analysts take for granted both firms’ interest in cashing in on billions of dollars of hidden capital gains, both due to the revaluation of their packages (they bought them at 19 euros per share and today’s stock price is around 26 euros) and accumulated capital. dividends during this period. So far, it has been predicted that the market will effectively explore the exit of GIP; It is not yet known how the acquisition of GIP by BlackRock will affect these final moves.
BlackRock has significant stakes in many Spanish business giants, especially in the energy sector, which is one of the reasons for the political concerns raised by the operation. American executive is now the company’s first shareholder repsolsecond with 5.47% of the capital iberdrolaAt 5.395% they are only behind the Qatar sovereign fund (8.7%) and also hold related positions. Enagalarmanager of the Spanish gas system, 5.4% between direct and indirect participation; and also Rediais the parent company of Red Eléctrica de España and the Hispasat satellite group, with a 4.99% stake. The investment giant also has a solid presence in the Spanish banking sector (with stakes in companies). Santanderwith 5.4%; insideBBVAwith 5.9% of its capital; And Sabadell Bankwith 3.9% of capital) or infrastructure (with 5.3% of the construction group). ACS).