Czech Utility CEZ Secures 55.2% Stake in Gas Infrastructure Operator GasNet

By Velizar Velikov, Head of M&A Database at EMIS

Czech utility CEZ Group signed a deal to acquire a 55.2% stake in GasNet, the country’s largest gas distribution operator, from Macquarie Asset Management for EUR 846.5mn. This values the transaction at around EUR 3.6bn, factoring in EUR 2.7bn in net debt.

The purchase enhances CEZ’s strategic position, aligning with its “Clean Energy for Tomorrow” plan to transition from coal-based power to cleaner alternatives like natural gas and eventually hydrogen.

GasNet will aid CEZ’s transition by supporting its liquefied natural gas imports and shifting Czech energy generation to gas. The company’s network will later help facilitate the distribution of hydrogen and green gases. The acquisition secures a strategic position for decarbonization goals, increasing the share of regulated business within CEZ’s portfolio.

GasNet’s distribution network transports energy to 2.3 million connection points via 65,000 km of pipelines that cover 80% of the country. Its portfolio also includes maintenance and operations company GasNet Sluzby.

Macquarie initially invested in GasNet in 2013. In 2015, it increased its stake and did so again in 2019, forming a consortium with British Columbia Investment Management Corporation (BCI) and Allianz to acquire full ownership of the company. It improved GasNet’s operational and environmental performance, reducing network losses by 30% and supporting decarbonization. A EUR 1.8bn investment helped modernize GasNet’s infrastructure while enhancing safety standards. 

The transaction is subject to regulatory approvals and is expected to close in the third quarter of 2024. 

CEZ Group is a majority state-owned conglomerate that operates primarily in the energy sector, with a focus on electricity generation and portfolio including renewable resources, nuclear power, biomass, and natural gas.

Macquarie is a global asset manager with a long-term investment approach and a focus on real assets, infrastructure, and real estate. It manages approximately EUR 563bn in assets globally.

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