Shareholders pushing for Gas Natural Fenosa’s LNG business sale
Madrid-based Gas Natural Fenosa’s chief executive Francisco Reynes was asked by a group of shareholders to consider selling the company’s liquefied natural gas business.
A group consisting of Global Infrastructure Partners, CVC Capital Partners and Corporacion Financiera Alba, jointly holding around 40 percent interest in Gas Natural Fenosa have voiced their proposal to Reynes, ahead of the company’s 2018-2022 strategic plan launch, Spanish El Confidencial reports.
Responding to an LNG World News email, Gas Natural Fenosa’s spokesperson said the company “does not comment on rumors.”
The LNG business is estimated at €5 billion ($5.8 billion) and one of the companies that could be reportedly interested Gas Natural Fenosa’s LNG business is its compatriot Repsol.
However, El Confidencial reports that, besides Repsol, major LNG players such as Chevron, ExxonMobil, Petronas and the two Russian companies Gazprom and Rosneft could be jumping at the opportunity.
The divestment would depend on the actual amount of potential earning for the LNG business, with sources close to the matter saying this would be needed if the company is to continue with dividend payments.
The company’s current cash generation, as well as its capital expenditures, are not allowing for the dividend payout to be increased to the level that would satisfy the shareholders.
LNG World News Staff