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Algerian energy company Sonatrach gets 3.85% of Gas Natural Fenosa

Barcelona-based Gas Natural Fenosa enlarges its capital with 515 million euros invested by the multinational North-African company, Société Nationale (Sonatrach).

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09 August 2011 09:13 PM

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ACN

Barcelona (ACN) .- Gas Natural Fenosa has formally concluded its capital enlargement by getting 515 million euros from  the Algerian gas company Société Nationale (Sonatrach), which now has 3.85% of the Barcelona-based energy giant. Sonatrach bought 38,183 million shares of Gas Natural Fenosa, which represents the entire capital enlargement. Sonatrach invested around 515 million euros, at 13.48 euros per share. Despite the investment, Sonatrach will not be present in the Catalan company\u2019s board. The agreement was finally concluded on June 14th .  It ends a long dispute over the price of gas supplies, which has been raging since 2007. The President of Gas Natural Fenosa, Salvador Gabarró said that ''with dialogue, respect and patience both parties have been able to favourably resolve a major conflict''. For his part, President of Sonatrach, Nordine Cherouati said after signing the agreement that it has established legacy of cooperation between the two companies ''in new areas.''


On June 14th this year, Gas Natural Fenosa and Société Nationale (Sonatrach) signed a package deal that put an end to the dispute over the price of gas and the competition to supply contracts. The agreement laid the foundations for future collaboration between the two companies and their respective groups, which in part has led to the process of capital increase announced this Tuesday.

Within the agreement, Gas Natural Fenosa agreed to resolve the differences that remain between the two companies regarding the appropriate cost of gas contracts. This move persuaded both sides to desist from any further disputes or legal proceedings.

In accordance with the agreement signed by Gas Natural Fenosa and Sonatrach in Algiers, the Barcelona-based company has paid $1,897 million dollars (1,500 million euros). This has been paid in instalments, over a 4.5 year schedule spanning, from January 1st (2007) to May 31st (2011).

The President of Gas Natural Fenosa, Salvador Gabarró, called the agreement ''positive'' and said "the opening of a stable relationship with the supplier is, for an energy group, an important and historic move''. Gabarró said that ''with dialogue, respect and patience both parties have been able to favourably resolve a major conflict''.

For his part, President of Sonatrach, Nordine Cherouati said after signing the agreement that it put an end to ''the differences between the two companies regarding the current gas contracts and at the same time'' it has established legacy of cooperation between the two companies ''in new areas.''

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  • An image of Gas Natural Fenosa headquarters, based in Barcelona (by ACN)

  • An image of Gas Natural Fenosa headquarters, based in Barcelona (by ACN)