ENGIE (EPA:ENGI) - ENGIE completes the sale of 10% of GTT’s share capital and the pricing of a €290 million exchangeable bond

Transparency directive : regulatory news

26/05/2021 08:32

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN THE
UNITED STATES OF AMERICA OR IN AUSTRALIA, CANADA OR JAPAN OR ANY OTHER
JURISDICTION IN WHICH OFFERS, OR SALES OF THE SECURITIES WOULD BE PROHIBITED BY
APPLICABLE LAW

Financial information
26 May 2021

  ENGIE completes the sale of 10% of GTT's share capital and the pricing of a
                       EUR290 million exchangeable bond

* Sale of 3.7 million GTT shares representing 10% of GTT's share capital
  through an accelerated bookbuilding offering
* Simultaneous issue of a EUR290 million zero coupon bond exchangeable into GTT
  shares with a maturity of 3 years and an exchange price of EUR78.25,
  representing a 20% premium above the placing price of the concurrent sale of
  GTT shares
* ENGIE would in case of exchange in full of the Bonds, retain a stake of ca.
  20% of GTT's share capital
* The disposal is consistent with ENGIE's enhanced divestment programme for
  non-core businesses and minority shareholdings, and follows the strategic
  review for its shareholding in GTT initiated in November 2020

Catherine MacGregor, ENGIE CEO, said: "Today's announcement is in line with
ENGIE's strategic plan towards simplifying the Group and its investor
proposition through exiting non-core activities. GTT is an innovative and high
performing business, and as a major shareholder ENGIE has benefitted from GTT's
continuing strong growth over the years."

ENGIE has completed the sale of 3.7 million shares of Gaztransport & Technigaz
("GTT") (the "Shares") at EUR67 per share and raised c. EUR248 million through
a private placement executed through an accelerated bookbuilding process (the
"Equity Placement").

Concurrently with the Equity Placement, ENGIE priced exchangeable bonds due
2024 for an aggregate nominal amount of EUR290 million (the "Bonds"), which
will be exchangeable into GTT shares at an exchange price of EUR78.25
corresponding to a premium of 20% above the placing price of the Equity
Placement(1) (the "Bond Issue" and together with the Equity Placement, the
"Transaction"), as further described below.

Through the Equity Placement, GTT purchased 0.2 million shares (equivalent to
0.5% of share capital) at the placing price of the Equity Placement.

(1) Adjusted down by the amount of GTT?s next dividend

The Bonds will not bear interest and will have a maturity of 3 years (except in
case of an early redemption). The Bonds will be issued at a price of 103.5% of
the principal amount and will be redeemed at their principal amount at
maturity, corresponding to an annual yield to maturity of -1.14%. The exchange
price of the Bonds was set at EUR78.25, corresponding to a premium of 20% to
the placing price of the Equity Placement(1).

In case of exchange in full of the Bonds, ENGIE will retain a stake of
approximately 20% in GTT's share capital.

The Transaction follows ENGIE's announcement on 13 November 2020 of an enhanced
divestment programme and initiation of a strategic review of options for its
shareholding in GTT, including a sell-down of all or part of ENGIE's
shareholding via equity capital markets.

ENGIE will use the net proceeds of the Transaction for general corporate
purposes. ENGIE has agreed to a 90-day lock-up for their remaining shares in
GTT.

Citigroup Global Markets Europe AG and Morgan Stanley Europe SE acted as Joint
Global Coordinators on the Equity Placement and the Bond Issue (together the
"Joint Global Coordinators").

The Joint Global Coordinators have informed ENGIE that concurrently with the
Transaction they conducted a simultaneous placement of EUR20 million of
existing Shares (the "Concurrent Equity Placement") on behalf of buyers of the
Bonds who wished to sell such Shares in short sales to hedge the market risk of
an investment in the Bonds at the placing price of the Equity Placement. ENGIE
will not receive any proceeds from the Concurrent Equity Placement.

Settlement for the Equity Placement is expected to take place on or around May
28, 2021 and the settlement on the Bond Issue is expected to take place on or
around June 2, 2021. An application will be made for the Bonds to be admitted
to trading on the Euronext Access market.

About ENGIE

(1) Adjusted down by the amount of GTT?s next dividend

Our group is a global reference in low-carbon energy and services. Together
with our 170,000 employees, our customers, partners and stakeholders, we are
committed to accelerate the transition towards a carbon-neutral world, through
reduced energy consumption and more environmentally friendly solutions.
Inspired by our purpose ("raison d'être"), we reconcile economic performance
with a positive impact on people and the planet, building on our key businesses
(gas, renewable energy, services) to offer competitive solutions to our
customers. Turnover in 2020: 55.8 billion Euros. The Group is listed on the
Paris and Brussels stock exchanges (ENGI) and is represented in the main
financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100,
MSCI Europe) and non-financial indices (DJSI World, DJSI Europe, Euronext Vigeo
Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG, MSCI Europe ESG,
Euro Stoxx 50 ESG, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).

ENGIE HQ Press contact:
Tel. France : +33 (0)1 44 22 24 35
E-mail : engiepress@engie.com
Twitter ENGIEpress

Investor relations contact:
Tel. : +33 (0)1 44 22 66 29
E-mail : ir@engie.com

This press release may not be released, published or distributed, directly or
indirectly, in or into the United States of America, Australia, Canada or
Japan. The distribution of this press release may be restricted by law in
certain jurisdictions and persons into whose possession any document or other
information referred to herein comes, should inform themselves about and
observe any such restriction. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such jurisdiction.

No communication or information relating to the offering of the Equity
Placement or the Bonds may be transmitted to the public in a country where
there is a registration obligation or where an approval is required. No action
has been or will be taken in any country in which such registration or approval
would be required. The issuance by ENGIE or the subscription of the Bonds or
purchase of Shares may be subject to legal and regulatory restrictions in
certain jurisdictions; none of ENGIE and the Joint Global Coordinators assumes
any liability in connection with the breach by any person of such
restrictions.

This press release is an advertisement and not a prospectus within the meaning
of Regulation (EU) 2017/1129 (the "Prospectus Regulation"). This press release
is not an offer to the public other than to qualified investors, or an offer to
subscribe or designed to solicit interest for purposes of an offer to the
public other than to qualified investors in any jurisdiction, including
France.

The Bonds and the Shares have only been and will only be offered by way of an
offering in France and outside France (excluding the United States of America,
Australia, Canada, Japan and any other jurisdiction where a registration
process or an approval would be required by applicable laws and regulations),
solely to qualified investors as defined in article 2 point (e) of the
Prospectus Regulation and in accordance with Article L. 411-2 1° of the French
monetary and financial code (Code monétaire et financier). There will be no
public offering in any country (including France) in connection with the Bonds
or the Equity Placement. The value of the Bonds and the Shares of GTT can
decrease as well as increase. Potential investors should consult a professional
adviser as to the suitability of the Bonds or the Shares for the person
concerned.

Prohibition of sales to European Economic Area retail investors

No action has been undertaken or will be undertaken to make available any Bonds
to any retail investor in the European Economic Area. For the purposes of this
provision:

a. the expression "retail investor" means a person who is one (or more) of the
   following:
   i. a retail client as defined in point (11) of Article 4(1) of Directive
      2014/65/EU (as amended, "MiFID II"); or
  ii. a customer within the meaning of Directive (EU) 2016/97, as amended,
      where that customer would not qualify as a professional client as
      defined in point (10) of Article 4(1) of MiFID II; or
iii. not a "qualified investor" as defined in the Prospectus Regulation;
      and
b. the expression "offer" includes the communication in any form and by any
   means of sufficient information on the terms of the offer and the Bonds to
   be offered so as to enable an investor to decide to purchase or subscribe
   the Bonds.

Consequently no key information document required by Regulation (EU) No
1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the
Bonds or otherwise making them available to retail investors in the European
Economic Area has been prepared and therefore offering or selling the Bonds or
otherwise making them available to any retail investor in the European Economic
Area may be unlawful under the PRIIPS Regulation.

Prohibition of sales to UK retail Investors

No action has been undertaken or will be undertaken to make available any Bonds
to any retail investor in the United Kingdom ("UK"). For the purposes of this
provision:

a. the expression "retail investor" means a person who is one (or more) of the
   following:
   i. a retail client, as defined in point (8) of Article 2 of Regulation (EU)
      No 2017/565 as it forms part of domestic law by virtue of the European
      Union (Withdrawal) Act 2018 ("EUWA"); or
  ii. a customer within the meaning of the provisions of the FSMA and any rules
      or regulations made under the FSMA to implement Directive (EU) 2016/97,
      where that customer would not qualify as a professional client, as
      defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as
      it forms part of domestic law by virtue of the EUWA; or
iii. not a qualified investor as defined in Article 2 of Regulation (EU)
      2017/1129 as it forms part of domestic law by virtue of the EUWA; and
b. the expression an "offer" includes the communication in any form and by any
   means of sufficient information on the terms of the offer and the Bonds to
   be offered so as to enable an investor to decide to purchase or subscribe
   for the Bonds.

Consequently no key information document required by Regulation (EU) No
1286/2014 as it forms part of domestic law by virtue of the EUWA (the "UK
PRIIPs Regulation") for offering or selling the Bonds or otherwise making them
available to retail investors in the UK has been prepared and therefore
offering or selling the Bonds or otherwise making them available to any retail
investor in the UK may be unlawful under the UK PRIIPs Regulation.

MIFID II product governance / Professional investors and ECPs only target
market - Solely for the purposes of each manufacturer's product approval
process, the target market assessment in respect of the Bonds has led to the
conclusion that: (i) the target market for the Bonds is eligible counterparties
and professional clients, each as defined in MiFID II; and (ii) all channels
for distribution of the Bonds to eligible counterparties and professional
clients are appropriate. Any person subsequently offering, selling or
recommending the Bonds (a "distributor") should take into consideration the
manufacturers' target market assessment; however, a distributor subject to
MiFID II is responsible for undertaking its own target market assessment in
respect of the Bonds (by either adopting or refining the manufacturers' target
market assessment) and determining appropriate distribution channels.

France

The Bonds and the Shares have not been and will not be offered or sold or cause
to be offered or sold, directly or indirectly, to the public in France other
than to qualified investors. Any offer or sale of the Bonds or the Shares and
distribution of any offering material relating to the Bonds or the Equity
Placement have been and will be made in France only to qualified investors
(investisseurs qualifiés), as defined in article 2 point (e) of the Prospectus
Regulation, and in accordance with Article L.411-2 1° of the French monetary
and financial code (Code monétaire et financier).

United Kingdom

This press release is addressed and directed only (i) to persons located
outside the United Kingdom, (ii) to investment professionals as defined in
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the "Order"), (iii) to high net worth
companies, and other persons to whom it may lawfully be communicated, falling
within by Article 49(2) (a) to (d) of the Order (the persons mentioned in
paragraphs (i), (ii) and (iii) all deemed relevant persons (the "Relevant
Persons")). The Bonds and, as the case may be, the shares to be delivered upon
exercise of the conversion rights (the "Financial Instruments"), are intended
only for Relevant Persons and any invitation, offer or agreement related to the
subscription, tender, or acquisition of the Financial Instruments may be
addressed and/or concluded only with Relevant Persons. All persons other than
Relevant Persons must abstain from using or relying on this document and all
information contained therein.

This press release is not a prospectus which has been approved by the Financial
Conduct Authority or any other United Kingdom regulatory authority for the
purposes of Section 85 of the Financial Services and Markets Act 2000.

United States of America

This press release may not be released, published or distributed in or into the
United States. The Bonds and the Shares described in this press release have
not been, and will not be, registered under the U.S. Securities Act of 1933, as
amended (the "Securities Act"), or the securities laws of any state of the
United States, and such securities may not be offered, sold, pledged or
otherwise transferred in the United States absent registration under the
Securities Act or pursuant to an available exemption from, or in a transaction
not subject to, the registration requirements thereof and applicable state or
local securities laws. The securities of ENGIE have not been and will not be
registered under the Securities Act and ENGIE does not intend to make a public
offer of its securities in the United States. Terms used in this paragraph have
the meanings given to them by Regulation S under the Securities Act.

Australia, Canada and Japan

The Bonds and the Shares may not and will not be offered, sold or purchased in
Australia, Canada or Japan. The information contained in this press release
does not constitute an offer of securities for sale in Australia, Canada or
Japan.

The distribution of this press release in certain countries may constitute a
breach of applicable law.

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02/05/2024 08:02

ENGIE (EPA:ENGI) - ENGIE completes the sale of 10% of GTT’s share capital and the pricing of a €290 million exchangeable bond

Transparency directive : regulatory news

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