Bulletin: ENGIE Gets Closer To Transformation Milestone On Announced Equans Disposal

PARIS (S&P Global Ratings) Nov. 15, 2021--S&P Global Ratings today said that French utility ENGIE SA (BBB+/Stable/A-2) faces markedly less execution risk on its transformation plan following its agreement to sell its asset-light client services business Equans to Bouygues for a valuation of €7.1 billion. The transaction has been submitted to employee representative bodies for consultation and should close in the second-half of 2022 following regulatory approvals. This disposal signals a significant milestone in ENGIE's strategy to focus on renewables and infrastructure, since Equans represents the largest share of the group's strategic simplification and resizing plan. The valuation of EQUANS is significantly above our base case. Although we believe the disposal will translate to a pro-forma reduction of EBITDA of

...November 15, 2021 PARIS (S&P Global Ratings) Nov. 15, 2021--S&P Global Ratings today said that French utility ENGIE SA (###+/Stable/A-2) faces markedly less execution risk on its transformation plan following its agreement to sell its asset-light client services business Equans to Bouygues for a valuation of 7.1 billion. The transaction has been submitted to employee representative bodies for consultation and should close in the second-half of 2022 following regulatory approvals. This disposal signals a significant milestone in ENGIE's strategy to focus on renewables and infrastructure, since Equans represents the largest share of the group's strategic simplification and resizing plan. The valuation of EQUANS is significantly above our base case. Although we believe the disposal will translate to a pro-forma reduction of EBITDA of about 700 million, it should yield a net S&P Global Ratings-adjusted debt reduction of 7 billion. We also believe that the group will exceed its 9 billion-10...

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