(Reuters) – A consortium led by PGGM, the Dutch pension fund manager, said on Wednesday it will purchase Spanish gas distributor Madrilena Red de Gas (MRG) for an undisclosed amount.
A PGGM spokesman said his organization, together with France’s EDF (EDF.PA) and Gingko Tree Investment, will purchase MRG from Morgan Stanley Infrastructure.
Spokesman Maurice Wilbrink of PGGM refused to disclose the size of the investment, or the breakdown of the consortium ownership, saying the information was market sensitive.
The Wall Street Journal, citing unnamed sources, said the deal values the company at roughly 1.25 billion euros ($1.35 billion) and that MRG has 775 million euros ($835 million) in outstanding debt, which will be assumed by the buyers.
MRG operates a network of 5,500 kilometers of pipelines, serving 842,600 households, PGGM said.
PGGM is one of the largest Dutch pension funds, with 189 billion euros ($203 billion) in managed assets.