PARIS (Reuters) - Engie ENGIE.PA on Friday said it was reviewing options for its 40% stake in engineering firm GTT and preparing for a potential spin-off of some of its client solutions business, as the sprawling French utility looks to simplify its structure.
Engie, which posted falling revenues for the nine months to September after its business was hit by the coronavirus pandemic, cashed out of most of its stake in waste management firm Suez SEVI.PA to its rival Veolia VIE.PA in October.
That 3.4 billion euro ($4.02 billion) disposal came in the midst of Veolia’s fraught takeover bid for Suez.
Engie, which has recruited former Technip FTI.N executive Catherine MacGregor as chief executive in January, said in a statement it could sell all or part of its stake in GTT, which specialises in the storage of liquefied gas.
It did not give a value for the unit, only adding that the disposal could take place directly on the market or as a formal sale to a third party.
Engie, which was born out of the former monopoly for gas transportation in France, has been trying to rejig its unwieldy structure. It includes a capital-intensive gas infrastructure and labour-intensive energy services and a fast-growing renewable energy arm.
Engie is preparing to carve out part of its client services business, in order to sell out via a stock market listing or by bringing in new investors, unions told Reuters in September.
The company said on Friday it was grouping activities related to the building and design of projects and electrical installations into a new entity with around 13 billion to 14 billion euros in revenue and 74,000 staff.
It would then review future ownership of the entity, it added.
Engie said it would hang on to other client services businesses focused on low carbon energy production, including its units which help install heating and cooling systems in cities.
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Reporting by Benjamin Mallet and Sarah White; editing by Emelia Sithole-Matarise
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