UK Fund Boosts Spanish Gas Stake

Goldman Sachs was cleared July 14 by the European Commission to farm down its stake in third-largest Spanish gas distributor Redexis Gas.

The commission said it had cleared a proposed acquisition of joint control over Redexis Gas and its finance arm by the Universities Superannuation Scheme Limited (USSL) of the UK, and two Goldman Sachs funds (both known as GSIP). USSL is the pension provider for UK universities' staff.

Redexis Gas announced May 28 that USSL and Dutch pension fund Arbejdsmarkedets Tillaegspension (ATP) -- which it described as "significant long term investments in high quality infrastructure companies" -- had each agreed to acquire 18.8% interests in Redexis Gas from GSIP. Both had been indirect investors in Redexis Gas as partners of GSIP since its initial investment in 2010 and had been increasing their stake over time, it added, without citing the transaction values.

Following the acquisition and changes in the shareholder structure, Redexis Gas said it will be owned by GSIP 50.1%, USSL 30% and ATP 19.9%.

It said that, as at March 31 2017, Redexis Gas owns and operates a total of 9,509km of gas pipes (1,622km transmission and 7,887km distribution). It said its 630,000 connection points supply over 6.6mn people, industries and businesses in a total of 565 municipalities.

Spain's national gas transmission grid operator is Enagas.

Redexis Gas was listed third in 2015 in a list compiled by the International Energy Agency (IEA) among Spanish gas distributors -- behind Gas Natural and EDP -- but ahead of Madrilena Red de Gas, Gas Directo, Gas Extremadura, Toloso Gas, and Canary Isles-based Gasificadora Regional Canaria. 

Mark Smedley