Ezentis buys Chile's Tecnet to grow in the energy market
14/12/2016
Diego Gutiérrez
Ezentis buys Chile's Tecnet to grow in the energy market
Ezentis, a Spanish listed company, has acquired Mexico's Tecnet, an industrial services company for electricity distributors, for €9M.
About Ezentis

Ezentis is an industrial group listed on the Madrid and Bilbao stock exchanges, currently focusing mainly on the maintenance, construction and operation of telecommunications and energy networks.

The company expects to achieve positive net profits for 2016, for the first time in the last decade.

In recent years, the group has opened new lines of business, diversifying geographically, focusing on Latin America - it is now in 10 countries - and entering the energy networks business, which now accounts for 21% of revenues, compared to 72% for telecoms. At the same time, it has restructured debt and deferred maturities. In 2015, debt was 3.2 times EBITDA, down from 13.7 times in 2013.

In May 2016, Ezentis sold its stake in Vértice 360 to Squirrel Inversiones, parent company of the Best Option Media group, a company in the audiovisual sector, although from a financial point of view the impact of the transaction is practically nil as this stake was fully provisioned in the company's accounts, this transaction eliminated the company's risks.

About Tecnet

Tecnet until now belonged to CGE, one of Chile's leading energy companies, owned by Gas Natural Fenosa.

The South American firm, which has no financial debt, achieved last year a turnover of €30m and a gross operating profit (ebitda) of €2.4m. In addition, the backlog amounts to €130 million.

Tecnet has a market share of 15% and operates in eleven regions of Chile for a total of eight distributors.

Strategic interest

This operation allows the Spanish company, which does not rule out the possibility of closing other operations in the coming months. acquisitionsThe acquisition will strengthen its presence in geographic markets in which it is growing (the purchase involves the consolidation of Chile as the group's second largest market by revenues with a weight of approximately 26%, behind Brazil with approximately 35%).

In addition, Ezentis is seeking to strengthen its presence in the field of energy networks and facilities, a strategic area for the Spanish group alongside telecommunications infrastructures.

 
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