Italy’s Snam and the government investment corporation of Singapore join EdF in the consortium which has entered “exclusive negotiations” with the French supermajor for Transport et Infrastructures Gaz France (TIGF).
Revealing the negotiations after the close of markets in Europe on Tuesday, Total said the offer from the consortium values the gas transmission and storage services player at EUR 2.4 billion ($3.26 billion).
“The proposed sale is aligned with Total’s active portfolio management strategy,” the oil company said.
Chief executive Christophe de Margerie said: “The consortium selected, consisting of industry-leading operators and long term investors, will support TIGF in its further development, while meeting the commitments made to TIGF’s employees and partners.”
TGIF manages a network of about 5000 kilometers of pipeline in southern France that carries 13% of the total volume of gas transported in the country, while it also operates 22% of the country’s gas storage capacity.
It has around 500 employees and generated revenues of over EUR 350 million in 2011.