Gas Natural, Spain’s largest seller of natural gas said in a statement today that they are selling their Madrid’s business for 800 million to Morgan Stanley’s infrastructure business and Portuguese company Galp Energia.
The company’s Madrid business, which stands at roughly 500,000 sales points of gas and electricity, is worth EUR1.2 billion and will help Gas Natural to recover from its soaring debt which stood at EUR21.29 billion at the end of the third quarter.
The deal attracted considerable amount of interest from different parties as banks are opening up lines of credits again after recession. London based CVC Capital Partners and U.S. based Carlyle Group were also interested in the deal.
This sale is being seen as a result an order by the Antitrust Authority of Spain, which ordered Gas Natural to sell its assets to repay its debts. The company has so far sold assets worth EUR 2 billion and is planning to sell its 2000MW gas based electricity business in the coming months.