Allianz Capital Partners has acquired a 75% stake in the natural gas distribution network Galp Gás Natural Distribuição from Portuguese oil and gas company Galp Energía.

The stake has been valued at €368m and has been made on behalf of Allianz insurance companies and the Allianz European Infrastructure Fund.

It is Allianz Capital Partner’s first direct infrastructure investment in Portugal.

The implicit enterprise value (EV) for 100% of Galp Gás Natural Distribuição is about €1.2bn, for an EV multiple of about 13x over 2020 estimated Ebitda.

The transaction is expected to close in Q1 2021, subject to regulatory approval.

Galp Gás Natural Distribuição holds nine regional gas distribution companies in Portugal. Galp owns 77.5% stake in Galp Gás Natural Distribuição.

Galp Gás Natural Distribuição serves 1.1 million households, including the capital Lisbon, through a 13,000km-long network.

The low-pressure polyethylene pipes, which make up 95% of the network, can be used for distribution of hydrogen, synthetic natural gas or biomethane. The pipes provide for an extended service life, lower maintenance costs and leakage rates.