PARIS, May 11 (Reuters) - Engie said it had received a binding offer from Neptune Energy for its 70 percent stake in its oil and gas exploration unit based on a value of 4.7 billion euros ($5.1 billion) for 100 percent of the unit.
Engie said the offer for its Exploration & Production International (EPI) arm included 1.1 billion euros in decommissioning liabilities that will be deconsolidated from Engie’s balance sheet.
The company added that the planned transaction will have a positive net impact on its debt of 2.4 billion euros.
Engie CFO Judith Hartmann told reporters that besides the 1.1 billion euros of decommissioning provisions, Neptune will also take over about 200 million euros of pension provisions. This brings the deal’s equity value to 3.4 billion euros, of which Engie will receive 70 percent or 2.4 billion in cash.
A source familiar with the situation said separately that China Investment Corporation (CIC) will see its stake in EPI rise from 30 to 49 percent, while Neptune Energy will have a 51 percent stake.
$1 = 0.9209 euros Reporting by Geert De Clercq; Editing by Sudip Kar-Gupta and Jean-Michel Belot