GDF SUEZ and China Investment Corporation (CIC) signed a MoU for cooperation across multiple businesses and regions, in particular in Asia Pacific. GDF SUEZ and CIC will cooperate on a non-exclusive basis to help accelerate their respective strategies by exploring areas of cooperation and co-investment opportunities. The MoU will be deployed across GDF SUEZ Group’s businesses (gas, power, water and waste, and energy efficiency services) and sets up the framework for cooperation in three areas:
- joint investment opportunities in existing and new energy-related projects in Asia Pacific;
- financing cooperation in new projects in Asia Pacific;
- commercial sponsorship and support to GDF SUEZ in Asia Pacific region, including China, by CIC’s affiliates. The MoU will be administered through a Steering Committee chaired by the two groups’ respective CEOs.
As the first milestone of this cooperation, CIC is in advanced exclusive talks with GDF SUEZ regarding a €2.3bn minority investment in the Exploration & Production division of GDF SUEZ (GDF SUEZ E&P) (excluding the 22.5% equity stake in E.F. Oil and Gas Limited (EFOG)). CIC will own 30% of GDF SUEZ E&P, following a capital increase and a financial restructuring of GDF SUEZ E&P reducing its net financial debt to €0.7bn.
As part of the agreement, CIC would also acquire from GDF SUEZ a 10% stake in the train 1 of the Atlantic LNG liquefaction plant located in Trinidad and Tobago as well as production payments associated with trains 2, 3 and 4 for an amount of €0.6bn.
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