Portugal's REN has 1 pct stake in Enagas

MADRID, April 25 (Reuters) - Portuguese national grid operator REN (RENE.LS: Quote, Profile, Research) now holds 1 percent of Enagas (ENAG.MC: Quote, Profile, Research) under the terms of an agreement to swap shares, the Spanish gas transport company said on Friday.

REN and Enagas have agreed to cross shareholdings to prepare for the formation of a cross-border Iberian gas market to be known as Mibgas. REN will be allowed to own up to three percent of Enagas, and Enagas up to five percent of REN.

Enagas has so far bought no REN shares, however.

"We have not been able to buy so far as it (REN) has a very small free-float," Enagas Chairman Antonio Llarden told journalists after an annual shareholders' assembly.

Llarden added that he had met with REN to discuss shareholdings and new interconnections between Spain and Portugal. (Reporting by Clara Vilar; Writing by Martin Roberts; Editing by David Cowell)