Canada Pension Plan Investment Board is weighing a sale of its 12 per cent stake in Spain’s largest gas distributor, according to people with knowledge of the matter.
CPPIB has been in talks with financial advisers over the potential sale of its stake in Nedgia, which it bought for €900 million (US$1 billion) in 2018, the people said, asking not to be named, as the matter isn’t public. Deliberations are still at an initial stage and CPPIB may decide not to go ahead with the divestment, the people said.
Spokespeople for CPPIB, Nedgia and Naturgy declined to comment.
Nedgia was created in 2018, when it was spun off from Naturgy Energy Group SA, which still owns 80 per cent. At the time, CPPIB bought its 12 per cent while Allianz acquired eight per cent. The two funds own their stakes through a joint investment vehicle.
A sale by CPPIB would come shortly after the Spanish energy markets authority CNMC approved a new regulatory and remuneration framework for Spain’s natural gas sector covering the 2027–2032 period.
Nedgia’s grid is connected to more than 5.5 million supply points in 1,222 municipalities, according to its website.