Bord Gáis Éireann announces that it has entered a definitive agreement to sell Bord Gáis Energy to a consortium comprising Centrica plc, Brookfield Renewable Energy Partners LP and iCON Infrastructure.
- Definitive agreement reached between Bord Gáis Éireann and Centrica, Brookfield Renewable and iCON for sale of Bord Gáis Energy
- Enterprise Value of €1.1bn
- Completion due in Q2 2014
- Bord Gáis Energy staff to transfer on existing terms and conditions
25th March 2014: Bord Gáis Éireann announces that it has entered a definitive agreement to sell Bord Gáis Energy to a consortium comprising Centrica plc, Brookfield Renewable Energy Partners LP and iCON Infrastructure. Following selection of the consortium as preferred bidder on 12 December 2013, the full terms of the sale have been finalised and transaction documentation signed.
The sale, which is subject to various conditions to closing including regulatory and merger approvals, is expected to close in the second quarter of 2014. The enterprise value of the transaction is €1.1bn, including contingent consideration. As part of the transaction, the consortium will also take over responsibility for providing collateral and other support for the continuation of commodity procurement and trading by Bord Gáis Energy.
All Bord Gáis Energy staff will transfer to the new consortium with their existing working terms and conditions.
Pat Rabbitte TD, Minister for Communications, Energy and Natural Resources and Brendan Howlin TD, Minister for Public Expenditure and Reform said: “We are pleased to announce that an agreement to sell the Bord Gáis Energy business has been signed. The commitment made by these buyers to acquire the business is a strong vote of confidence in the Irish energy market, the Irish economy and in the Bord GáisEnergy business and its employees. The sale proceeds will provide additional funding to Government to enable further investment in infrastructure and jobs.”
Bord Gáis Éireann Chairman Rose Hynes said: “The fact that Bord Gais Energy is valued at over one billion Euros underlines not just the strength of the business but also the growing health of the Irish economy. We aim to complete the sale in the second quarter of 2014. Following the sale of its energy business, Bord Gáis Éireann will continue its transformation to become a major Irish infrastructure company consisting of two main subsidiaries, Irish Water, which it is developing into a world class utility business, and Gas Networks Ireland which will continue to fulfil its central role in energy supply.”
For further information contact:
James Dunny, FleishmanHillard – 086 388 3903