Abu Dhabi’s Taqa Holds Talks With Naturgy Holders About Deal

(Bloomberg) -- Abu Dhabi National Energy Co. has approached two shareholders of Naturgy Energy Group SA about the possible acquisition of their stakes in the Spanish gas and power firm.

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Taqa, as the Abu Dhabi-based investor is known, said it’s holding talks with buyout firms Global Infrastructure Partners and CVC Capital Partners to acquire their shares in Naturgy, according to a regulatory filing released on Wednesday. Naturgy shares jumped 5% in Madrid as they resumed trading after being suspended earlier. The stock has dropped 16% so far this year.

The investor is also holding talks with Naturgy’s main shareholder, Spanish industrial holding company Criteria Caixa SA, regarding a possible “cooperation pact.” If Taqa acquires the stakes held by CVC and GIP, it would need to make a full takeover bid for Naturgy, it said.

A deal would seek to end long-standing tensions between Naturgy’s four largest shareholders, who jointly control about 83% of the company. GIP and CVC each own about 21% of Naturgy, while infrastructure fund IFM owns about 15%. Criteria is the biggest shareholder with a stake of about 27%.

Naturgy hasn’t been approached, Taqa said in the filing.

Taqa hired Rothschild and Lazard to study ways to enter Naturgy’s capital, newspaper Expansion reported, citing three people in the market it didn’t identify. Taqa declined to comment when contacted by Bloomberg on Tuesday.

(Adds stock performance in second paragraph, comment from filing in fifth paragraph.)

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