Pontegadea, a company owned by businessman Amancio Ortega, also owner of Inditex, purchased a 5% share in Enagás for €281.64 million during the capital increase devised by the gas company to finance a plan to strengthen its position in U.S. Tallgrass, as it told the National Stock Market Commission.
Pontegadea obtained more than 13 million stocks in this transaction
Currently, Pontegadea owns a 50.01% share in Inditex (owner of fashion brand Zara) through Partler 2006 – the same company through which it just joined Enagás. It has also invested billions in head offices and commercial districts. These purchases are largely debt-free and use Inditex dividend payments.
Pontegadea has purchased infrastructure assets in the past, including the acquisition of a 10% share in Telxius in 2018, a company that has telecom towers and underwater cables.
Enagás capital increase
Enagás successfully completed its €500 million capital increase by issuing 23,255,814 shares at €21.50 per share, down by just 1.47%.
In a public statement posted on its website, the company informed that this capital increase “was made in record time, through a fast private placement process that excluded the right of first refusal. Investor demand has exceeded the supply of new shares, which has evidenced the great interest seen in the market.”
According to Enagás, this capital increase is aimed at financing a scheme to increase its share in U.S. company Tallgrass Energy. The process was announced this week and will entail an investment of $836 million.
The firm assured that the rise in the number of shares that resulted from this capital increase does not alter its commitment with all shareholders as to the dividend per share. This commitment was established in terms of the company’s strategic update, made in March of this year. This agreement establishes the dividend will be increased to €1.74 per share in 2023.
“The success of this capital increase shows the market’s confidence in the strength of the company, as well as its support to the U.S. operation and in particular its international growth,” the statement highlights.
— Enagás (@enagas) 19 de diciembre de 2019
Impact on the market
After the news of Pontegadea’s entry into Enagás capital became known, the company’s shares rose in the Spanish stock market. At 15:10 its price was at the top of the Ibex 35, increasing by 2.80% to €22.43 per share.
On the other hand, Inditex values also went up. At the same time, the textile company went up by 0.39% to €31.22 shares per unit.
It is one of Amancio Ortega’s few investments in listed companies. The Pontegaeda firm mainly focuses on the real estate business.
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