Engie wraps €1.1B sale of stake in French gas network

Engie SA completed the sale of an 11.5% stake in France's largest gas transmission network, GRTgaz SA, to Société d'Infrastructures Gazières for €1.1 billion, the French utility announced Dec. 22.

Société d'Infrastructures Gazières, or SIG, has held a 25% stake in GRTgaz since 2011 and now owns about 39% of the company, with Engie retaining the remaining 61%, according to a news release. SIG is an investment vehicle held by France state-backed CNP Assurances SA and Caisse des Dépôts et Consignations.

As part of the deal, SIG sold a 17.8% interest in Elengy SA in exchange for new GRTgaz shares. The sale simplifies the shareholding structure of GRTgaz, which holds 100% of Elengy.

The transaction is part of Engie's plan to rebalance its exposure from French gas networks toward renewables and other infrastructure assets while continuing to fully consolidate GRTgaz, the utility said in the release.