Naturgy launches a voluntary OPA to reach 15% of ‘Free Float’

Naturgy Unveils Enterprising 2025-2027 Plan: Boosting Liquidity, Dividends, and Investments

Naturgy, Spain‘s leading energy company, recently announced its ambitious 2025-2027 strategic plan, designed to enhance liquidity, increase dividends, and significantly boost investments. These initiatives aim to position Naturgy for sustained growth and solidify its position as a major player in the energy transition.

Driven by positive market response,Naturgy’s share price surged over 4% on news of the plan,fueled by a voluntary open offer (OPA) exceeding 10% of its capital. This strategic move aims to address liquidity concerns and facilitate Naturgy’s return to prominent stock indices.

Boosting Liquidity: Back to Stock Indices

A cornerstone of Naturgy’s strategy is increasing its free float, aiming for 15% to regain eligibility for major indices, particularly those managed by MSCI. According to francisco Reynés, Naturgy’s CEO, achieving this target will “fulfill the mission” of restoring liquidity and ensuring continued trading activity.

“our objective is solely to return the company to its natural state of liquidity,” Reynés emphasized,highlighting the importance of market participation. Naturgy plans to achieve this through a voluntary OPA, offering shareholders 26.5 euros per share,representing approximately 2.3 billion euros. Currently, Naturgy’s free float stands at 0.9%.

Investing in Growth: Focus on Renewables and Networks

Naturgy’s 2025-2027 plan outlines a critically important investment commitment, totaling 6.4 billion euros over the period. Notably, 75% of these investments will be directed towards Spain, emphasizing the company’s dedication to supporting the nation’s energy transition.

These investments will primarily focus on strengthening distribution networks and expanding renewable energy capacity, aligning with the global shift towards lasting energy sources. Reynés described the plan as “ambitious” yet achievable, surpassing the previous roadmap’s annual investment of 1.4 billion euros.

Shareholder Support and Future Outlook

Naturgy’s strategic plan and voluntary OPA have received unanimous support from the board of directors representing all shareholders, demonstrating confidence in the company’s direction. Key shareholders, including Criteria Caixa, BlackRock, CVC/Rioja, IFM, and Sonatrach, are expected to participate proportionally in the OPA.

While rumors persist regarding Taqa’s potential interest in acquiring Naturgy’s shares, Reynés clarified that, based on the latest communication, negotiations have concluded. Regarding the previously proposed Géminis plan, Reynés stated that the focus now lies on the 2025-2027 strategy, emphasizing that nothing is discarded, but the current plan takes precedence.

Naturgy addressed speculation about a potential return of its headquarters to Catalonia, stating that there have been no discussions or official communications regarding such a move.

Naturgy’s strategic plan presents a bold vision for the future, emphasizing liquidity, dividend growth, and substantial investments in renewable energy and distribution networks. These initiatives position Naturgy for continued success and underscore its commitment to leading Spain’s energy transition.

How does Naturgy’s investment plan in distribution networks and renewable energy contribute to Spain’s energy transition goals?

Exploring Naturgy’s Ambitious Roadmap: A Conversation with CEO, Francisco Reynés

Liquidity and Stock Index Eligibility

Archyde: Naturgy has set a target of 15% free float to regain eligibility for major stock indices. Why is this move critical for the company?

Francisco Reynés, CEO of Naturgy: Increasing our free float is crucial to restore liquidity and ensure continued trading activity in Naturgy’s shares. Being eligible for prominent indices will attract more investors and enhance our market presence, benefiting all our shareholders.

Voluntary Open Offer (OPA) and Investment Plans

Archyde: Can you walk us through Naturgy’s voluntary OPA and how it fits into the overall strategic plan for the next three years?

Reynés: The voluntary OPA is a key step towards our 15% free float target. By offering 26.5 euros per share, we aim to boost our liquidity and return to our ‘natural’ state of market participation. Concurrently, we’re committing to an ambitious investment plan totaling 6.4 billion euros over the next three years, with 75% allocated to Spain.

Archyde: Speaking of investments, what are the primary areas Naturgy is focusing on, and why?

Reynés: Our focus is on strengthening distribution networks and expanding renewable energy capacity. spain’s energy transition is crucial, and these investments ensure we remain at the forefront of this shift towards lasting, enduring energy sources.

Shareholder Support and Future Aspirations

archyde: How has the market and key shareholders responded to Naturgy’s strategic plan?

Reynés: we’ve received unanimous support from our board of directors, representing all shareholders. Major stakeholders like Criteria Caixa, BlackRock, CVC/Rioja, IFM, and Sonatrach have expressed their intention to participate proportionally in the OPA. We’re grateful for their confidence in our direction.

Archyde: Lastly, Francisco, there have been rumors about Taqa’s potential interest and the Géminis plan. Could you elaborate on these, and how they factor into Naturgy’s long-term vision?

Reynés: While negotiations with Taqa have concluded, we maintain an open dialogue with all our partners. As for the Géminis plan, nothing is discarded, but our immediate focus is on delivering the ambitious 2025-2027 strategy. We believe this approach best serves our shareholders and positions Naturgy for continued success.

Naturgy’s strategic plan demonstrates a clear commitment to enhancing liquidity, dividends, and investments in renewable energy and distribution networks. With this roadmap, Naturgy is set to solidify its role in Spain’s energy transition and continued growth.

Join the Conversation

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