Redexis eyes EDP’s Naturgas assets worth 200 mln euros
* Goldman bets on Spanish gas natural market potential (Adds details, background)
By Andrés González
MADRID, Oct 9 (Reuters) – Redexis, the holding for the gas distribution business in Spain of Goldman Sachs Infrastructure Partners, has hired a bank to advise it on buying assets from competitor Naturgas, the local unit of Portugal’s EDP , two sources aware of the process said.
Goldman Sachs is betting on Spain after the government overhauled last year laws that regulate the gas sector, offering a more stable framework for investments in a country where gas demand is expected to rise as a five-year economic slump comes to an end.
The Spanish market also has strong growth potential because the country uses less natural gas than the rest of Europe and lower gas prices as a result of shale gas expansion in the United States make it an attractive energy option for cash-strapped consumers.
“Redexis has given a mandate to buy assets of Naturgas worth 200 million euros,” said one of the sources on condition of anonymity. The source declined to say which bank had won the mandate for the acquisition.
Redexis has a strong network in the Spanish regions of Aragon, Balearic Islands, Andalusia, Castille and Leon, Castille-La-Mancha, Valencia and Madrid, but lacks a presence in the north of the country and southern Murcia, where Naturgas is well positioned.
The second source said the process was at an early stage and Redexis could still decide not to move ahead with the move.
Redexis and EDP declined to comment.
Redexis, a former unit of Endesa which is owned by Italy’s Enel, has 46.8 million euros available in cash and another 300 million euros from two different credit lines it recently secured and had not used as of June 30.
It also issued in April a 650-million-euro bond to refinance its debt.
With revenues of 77 million euros and earnings before interest, tax, depreciation and amortisation (EBITDA) of 55 million euros, Redexis reported a 72 percent EBITDA margin in the first half of the year. (Writing by Julien Toyer; Editing by Tracy Rucinski and Mark Potter)