Centrica to take 51% stake in Belgian SPE

Centrica plc has plans to increase its shareholding in Belgian generation and supply company SPE SA (SPE) to a controlling 51 per cent.

Centrica has exercised its pre-emption right over the 25.5 per cent interest in SPE currently held by GDF International SAS (GdF) through an acquisition of GdF’s 50 per cent stake in the 50/50 joint venture, Segebel SA.

This will be added to Centrica’s existing 25.5 per cent interest. GdF was obliged to dispose of its stake in SPE as part of the anti-trust remedies imposed by the European Commission as a condition of its approval of GdF’s merger with Suez.

On completion, which is expected to take place in September 2008, Centrica will pay €515 million in cash for GdF’s 25.5 per cent stake in SPE.

In addition, deferred consideration of up to €105 million will be payable based on the final terms and the timing of approval of the “Pax Electrica 2″ agreements under which SPE will acquire additional power offtake from Belgian nuclear power plants.