Gas Natural Fenosa will sell its holdings in the African companies Kangra Coal and Iberafrica for a total of 76.8 million euros, as reported by the company on Wednesday, which frames these operations in its efforts to optimize its portfolio and in the "continuous review". "of regions or businesses that are not objective.

In particular, Gas Natural has reached a preliminary agreement with Menar Holding to sell its 70% stake in Kangra, based in Johannesburg (South Africa), for 28 million dollars (24 million euros). The company does not expect effects in its income statement due to this operation.

remuneration and intense asset rotation.

At the same time, Gas Natural Fenosa has reached an agreement with AEP Energy Africa (AEP) to sell 100% of its shareholding in Iberafrica, based in Kenya, for about 61.6 million dollars (52.8 million euros) ). The gas company does not expect this operation to generate significant capital gains.

The sale of 70% of Kangra to Menar Holding is subject to the execution of the preferential purchase right held by Izimbiwa, the partner of Gas Natural in Kangra, owner of the remaining 30% of this company, as explained by the company to the National Commission of the Stock Market (CNMV).

Likewise, the signing of this transaction, which is expected to be finalized before the end of the year, is subject to compliance with the terms and procedures established in the Kangra shareholders agreement, the necessary regulatory approvals and the authorization of Competition.

Regarding the sale of 100% of Iberafrica, Gas Natural expects to materialize within the fourth quarter of this year.

Iberafrica owns and operates a diesel power plant of about 103 megawatts (MW), while Kangra has a mining right in the province of Mpumalanga and a stake in the Richards Bay coal terminal.

Divestitures and new strategic plan

The sale of these shares is part of the strategic review policy of Gas Natural's business portfolio.

The company is working on what will be its new strategic plan, which will be presented tomorrow, and which will mark the roadmap of the energy company for the period 2018-2022.

This plan, which will focus on creating value for shareholders, will be based on the management and organization, the optimization of the business and targeting portfolio and the business and shareholder remuneration.

Menar Holding