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Engie to divest stake in Engie EPS to TCC

20 Apr 2021 (Last Updated April 20th, 2021 16:26)

France-based energy company Engie has signed a sale purchase agreement to sell a 60.5% stake in the share capital of Engie EPS to Taiwanese company TCC.

France-based energy company Engie has signed a sale purchase agreement to sell a 60.5% stake in the share capital of Engie EPS to Taiwanese company TCC.

TCC has agreed to pay €17.10 ($20.62) per share in cash for an aggregate consideration of €132m ($159m) and an implied enterprise value of more than €240m ($288m).

Engie EPS is a provider and system integrator in storage and eMobility solutions.

Engie CEO Catherine MacGregor said: “The sale of our stake in Engie EPS is in line with the group’s strategy to simplify its activities and focus on core businesses. This transaction is part of our enhanced disposal plan announced last July.”

With more than $10bn market capitalisation, TCC is involved in power generation, battery manufacturing, cement production, environmental services, chemicals, logistics and infrastructures.

In recent years, the company has been active in developing renewable energy and energy storage systems.

Completion of the deal is expected to take place this year subject to customary approvals and regulatory consent. Upon completion, Engie EPS will trade as New Horizons Ahead (NHOA).

Engie confirmed that it will pursue commercial partnerships with NHOA after the transaction.

Engie EPS CEO Carlalberto Guglielminotti said: “This acquisition by a leading, visionary industrial group like TCC, represents the ultimate recognition of our world-class technology leadership and a transformational opportunity to consolidate our growth globally.

“It will give us instant access to a world-leading supply chain and to Asian markets, as well as the financial breadth to credibly position as a global leader in the turnkey delivery of energy storage systems and a global enabler of the eMobility revolution.”

Last September, Engie decided to assess strategic options for Engie EPS. The company said this sale will contribute to its ongoing group simplification programme.

In October, Engie acquired the Hills of Gold wind facility from Wind Energy Partners for A$750m ($528m).