Czech conglomerate ÈEZ Group is acquiring a 55.21 percent stake in GasNet, the Czech Republic’s leading gas distribution infrastructure operator, in a move to transition from coal-powered energy generation to natural gas and hydrogen.
CEZ Group will acquire the stake from Macquarie Asset Management, acting on behalf of managed funds. The target of the transaction is a 55.21 percent stake in Czech Gas Networks, S.à r.l., which is the sole owner of Czech Gas Networks Investments, S.à r.l., the owner of Czech Grid Holding, a.s., which in turn owns GasNet, s.r.o., and GasNet Služby, s.r.o.
The purchase price amounts to $917.43 million (EUR 846.5 million), which corresponds to the equity value of the interest being acquired. The purchase price will be financed with a bridge loan underwritten by a syndicate of commercial banks, with subsequent refinancing facilitated via the bond market, CEZ Group said in a statement Thursday.
The completion of the transaction is subject to approvals by the European Commission and the Czech Ministry of Industry and Trade.
The GasNet Group manages a network of 40,389 miles (65,000 kilometers) of gas pipelines and holds an approximately 80 percent share in the distribution of natural gas in the Czech Republic, serving approximately 2.3 million points of consumption and distributing 66 terawatt-hours of gas every year, according to the statement.
“In light of [the] swiftly approaching end of coal in power and heat generation, natural gas distributed by GasNet is a crucial component of energy security in the near future”, Pavel Cyrani, Vice Chairman of the Management Board of ÈEZ, said. “Later, the role of [the] GasNet network will continue with transporting hydrogen or other green gases. ÈEZ aims to leverage its extensive experience with operation of power distribution and to focus on achieving synergies in operating both the gas and electricity networks on almost fully overlapping territories”.
“ÈEZ has announced an extensive energy modernisation initiative, with ambitious goals in green and low-emission energy for 2030 as part of its Clean Energy for Tomorrow strategy”, Daniel Beneš, Chairman of the Management Board and CEO of ÈEZ, said. “In the realm of power generation, we focus on renewable resources and nuclear power; in the heat and power generation sector, on biomass and natural gas, which will be serving as a transitional fuel for the energy transformation”.
“We’ve already acquired a significant capacity in two liquified gas terminals in Germany and the Netherlands, and this acquisition of the country’s largest gas distribution system operator will further strengthen our position within the gas market”, Benes continued. “We are acquiring assets important for the transition of the Czech heat and power generation sector to hydrogen; while increasing the proportion of regulated business within our portfolio for the benefit of our shareholders”.
CEZ Group in November 2023 contracted a long-term annual capacity of 70.6 billion cubic feet (2 billion cubic meters) of liquefied natural gas (LNG) from the Stade terminal, located near Hamburg at the mouth of the Elbe River on the North Sea. The terminal will be commissioned by its operator, Hanseatic Energy Hub, in mid-2027.
“Onshore terminals will gradually replace the temporary floating ones, so from the outset we sought to acquire long-term capacity in one of them”, Beneš said in an earlier statement. “Until recently, we had not been in the LNG market at all, and over the last year and a half we have gained a lot of experience that we will now build on. We have leased capacity at the floating terminal in Eemshaven until the end of 2027, and thanks to Stade we will be able to smoothly continue supplying LNG after this date”.
“Another advantage is that we will only have to cross one international border when transporting gas to the Czech Republic”, he added.
