French oil giant Total SA (TOT: Quote,TTFNF.PK,TTA.L) on Wednesday said it has entered into exclusive negotiations with a consortium regarding the proposed sale of all outstanding shares of Transport et Infrastructures Gaz France or TIGF. The offer values the company at 2.4 billion euros. Total said the proposed sale is aligned with its active portfolio management strategy.
The consortium, comprising French utility group Electricité de France S.A. or EDF (EDFEF.PK), Italian natural gas transportation and distribution services provider Snam SpA (SNMRY.PK,SNMRF.PK) and Government of Singapore Investment Corp. or GIC, has submitted a firm offer to acquire TIGF.
TIGF, with almost 500 employees, provides gas transmission and storage services in southwestern France. It manages a network of about 5,000 kilometers of pipeline that carries 13 percent of the total volume of gas transported in France and operates 22 percent of the country's gas storage capacity. TIGF generated revenues of over 350 million euros in 2011.
The proposed sale is subject to information and consultation procedures with the relevant employee representative bodies, including consultation with relevant authorities.
Total noted that the dialogue was initiated with employee representatives from the commencement of the process leading to an agreement — "Undertakings in Case of the Sale of TIGF" — that was signed on January 23. In particular, the agreement includes provisions concerning maintaining jobs, benefits and TIGF's headquarters in Pau.
Christophe de Margerie, Chairman and CEO of Total, said, "The consortium selected, consisting of industry-leading operators and long term investors, will support TIGF in its further development, while meeting the commitments made to TIGF's employees and partners."
In Paris, Total shares closed Tuesday's trading at 39.45 euros, up 0.45 euros or 1.15 percent.
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by RTT Staff Writer
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