Interest in infrastructure investments has risen sharply recently, as gas and electricity networks generate significantly higher returns than can be achieved with other asset classes in the low-interest environment.
(Photo: dpa)
Frankfurt According to financial circles, Germany’s largest gas transmission system operator Open Grid Europe (OGE) is about to change ownership. A valuation of up to seven billion euros, including debt, is in the room. The European infrastructure fund of the Australian financial group Macquarie intends to send the first information packages about the company to interested parties in the coming days, as several people familiar with the transaction said.
However, one of the people said that the schedule could possibly be delayed due to the war in Ukraine.
The company has fixed assets (RAB) of four billion euros and could be valued at 1.5 to 1.8 times that, it said. In October, Macquarie bought competitor Thyssengas for 1.8 times the RAB. Macquarie and OGE declined to comment.
Open Grid Europe operates the longest German long-distance gas network at 12,000 kilometers. The company is mainly active in the west of the country. As a result, the company is less dependent on Russian gas than its competitors, people familiar with the situation said. If gas supplies are switched to LNG landed by ship, OGE will benefit from its connection to the Dutch ports.
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According to financial circles, potential buyers of OGE shares are in any case primarily interested in the decarbonization story, i.e. the switch from natural gas to hydrogen, which could be produced using renewable energy sources and then transported to customers via the OGE network.
The consortium of investors paid 3.2 billion euros for OGE
A consortium of investors around Macquarie had bought Open Grid Europe from the energy company Eon in 2012, at the time for 3.2 billion euros. In addition to Macquarie, the owners include European Infrastructure Fund 4 (24 percent), British Columbia Investment Management (32 percent), the sovereign wealth fund of Abu Dhabi (ADIA, 25 percent) and Munich Re (19 percent).
According to financial sources, Macquarie expects first bids in May and hopes to sign a sales contract before the summer break. UBS and its own Macquarie investment bankers advise the investor. The co-investors have both a right of first refusal for the shares and a right to sell their own shares as well.
The competitors Fluxys, Snam and GRTgaz are considered to be interested. In addition, infrastructure investors and pension funds want to deal with the matter.
Interest in infrastructure investments has risen sharply recently, as gas and electricity networks generate significantly higher returns than can be achieved with other asset classes in the low-interest environment.
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