Alex White (Dublin South, Labour) | Oireachtas source

On 30 June last, the sale of Bord Gáis Energy was completed. In line with the share purchase agreement entered into by Ervia, formally Bord Gáis Éireann, the total enterprise value, inclusive of debt, for the sale is €1.1 billion, including a small element of contingent consideration.

On 7 July, a special dividend of €150 million was received from Ervia representing the first instalment of proceeds from the sale of Bord Gáis Energy. Further special dividends will accrue from that sale. Under EUROSTAT rules, there are limits to the amount of such dividends that can benefit the general Government balance in any one year. Potential future dividends to be achieved in the coming years will be subject to two criteria. The restructuring of the company will involve the establishment of the proposed new gas networks company in accordance with the Gas Regulation Act 2013, which is expected to be completed later this year. There will have to be full consideration on the appropriate gearing level in line with the company's growth plans as well as regulatory and policy objectives. The net proceeds of the sale, when combined with the planned re-gearing and the contingent consideration, are expected to deliver total dividends in the order of €1 billion for the Exchequer.

Deputy Moynihan asked about the revenue raised from the sale of Bord Gáis Energy. The Government's consistent position is that the funds released from asset disposals, to include the proceeds from the sale of Bord Gáis Energy, should be used, to the greatest extent possible, to support job creating initiatives in the economy.

I can confirm that the total fees to be paid to the Government's financial and legal advisers amount to €1.2 million, excluding VAT. The Ervia annual report has recently been published and Ervia has provided additional details on professional fees paid relating to the transaction amounting to €18 million. I am advised that the fees and transaction costs are within the normal range for this type of large and complex transaction.

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