Engie Brasil announced on Thursday a strategic agreement, confirming the sale of a 15 percent stake in the natural gas pipeline firm TAG to Canadian investment fund Caisse de Depot et Placement du Quebec (CDPQ) for 3.1 billion reais ($641 million).
Upon the successful completion of this transaction, CDPQ’s ownership in TAG will rise to 50 percent, significantly increasing its position within the company. Engie Brasil, on the other hand, will retain a 17.5 percent share, while its French parent company will retain the remaining portion, resulting in an indirect 50 percent stake.
The initial acquisition of a 90 percent stake in TAG took place in 2019 through a collaborative effort between Engie and CDPQ, involving the purchase from state-run oil firm Petrobras for approximately $8.6 billion. Subsequently, the remaining stake was acquired in the subsequent year.
TAG stands as a key proprietor and operator of a substantial segment of Brazil’s natural gas pipelines, boasting an extensive network spanning approximately 4,500 kilometers (2,800 miles) across 10 states within the country.