Naturgy Energy Group SA has reportedly paused its intention to sell the Australian assets held by its renewable energy arm, Global Power Generation, citing concerns over valuation. According to insiders familiar with the matter, initial interest from potential buyers failed to meet Naturgy’s valuation expectations, prompting the Spanish energy conglomerate to halt the sale process. Naturgy had aimed to generate approximately A$4 billion ($2.6 billion) from this divestment, as indicated by sources requesting anonymity due to the confidentiality of the matter.
Prospective buyers included infrastructure-focused investment funds and renewable energy firms. Although the sale process has been put on hold for now, sources suggest it may be revisited in the future. Naturgy reportedly perceives greater potential for value appreciation within the unit before pursuing divestment further.
Responding to inquiries, a representative for Naturgy declined to provide comments on the matter. The company’s shares have witnessed a decline of approximately 26% this year, attributing to a valuation of approximately $21 billion. In recent times, Naturgy has undertaken asset sales to bolster liquidity and streamline its global portfolio, including the divestment of a Chilean electricity network operator to State Grid Corp. of China for about $3 billion.
Global Power Generation (GPG), the unit in question, boasts an installed capacity of over 4 gigawatts across eight countries, encompassing various energy sources such as wind, solar, hydro, gas-fired, thermal, and battery storage.
Naturgy holds a majority stake of about 75% in GPG, while the remaining shares are owned by investment firm Wren House Infrastructure Management, a subsidiary of the Kuwait Investment Authority.
