Tie-up between Vinci and Cegelec to create a major European player in the energy services sector
Vinci is to acquire energy services provider Cegelec from Qatari Diar in exchange for 31.5 million Vinci shares. Qatari Diar will become Vinci’s largest shareholder after its employees.
The move underpins a strategic partnership between Qatari Diar and Vinci. The pair are seeking to combine business cooperation and the finalisation of a stable shareholding agreement between the two partners.
In accordance with regulatory provisions, the project will be submitted first to employee representative bodies for consultation and will also have to be cleared by the competent competition authorities.
Cegelec is an international group that provides services to businesses and local authorities. It operates primarily in four major sectors: electrical engineering, climate control and mechanical engineering; automation, instrumentation and control; information and communication technologies; maintenance and services.
Cegelec’s headcount totals 27,000 employees and operates in more than 30 countries through more than 1,200 sites.
The contribution of Cegelec would enable Vinci to expand its energy division which would post revenue in excess of €7 bn in a sector set to post consistently higher growth rates than GDP. Cegelec currently has annual revenues of around €3 bn.
Vinci says the move will result in acceleration of the Group’s penetration into international markets in energy services by building up its operations in Europe and opening up the market in emerging countries.
A director from Qatari Diar would be appointed to the Vinci Board (subject to approval from the Group’s shareholders), and would also be a member of the strategy and investment committee. The agreement would also stipulate that Qatari Diar is to keep a stake in Vinci that could range between 5% and 8% for three years.
Electrical and Mechanical Contractor