ENGIE Successfully Places 2 Million GTT Shares through Private Placement

ENGIE Group has announced the successful private placement of 1,994,107 shares of Gaztransport & Technigaz (GTT) at a price of €137.00 per share, which was facilitated by Morgan Stanley Europe SE and Natixis. This move is part of ENGIE Group's strategy to hedge its economic exposure associated with its residual ownership in GTT, amounting to roughly 5.38% of GTT’s share capital. This initiative aligns with ENGIE’s previously declared divestment program and strategic assessment of its GTT shareholding.

The hedging strategy employed by ENGIE involves 18-month forward sale agreements with Morgan Stanley Europe SE and Natixis, allowing ENGIE to secure a future sell price for its remaining GTT shares, while maintaining ownership and voting rights until the sale concludes in September 2025. To cover their obligations under these forward sale transactions, the hedging banks arranged for the private placement of the GTT shares through an accelerated bookbuilding process, targeting qualified investors. The completion of the share settlement is projected for March 18, 2024. Moreover, Morgan Stanley Europe SE and Natixis acted as the Joint Global Coordinators for this offering.

This sequence of transactions underscores ENGIE's ongoing effort to streamline its investment portfolio as part of its broader divestment and strategic review, which previously included the sale and exchange of significant GTT shareholdings in 2021 and 2022.