3i Infrastructure Limited agrees acquisition of 45 percent interest in the OT Companies
3i Infrastructure Limited ("3i Infrastructure") has signed agreements with Oiltanking GmbH and the Malta Freeport Corporation Limited to acquire a 45 per cent interest in Oiltanking Singapore Limited, Oiltanking Amsterdam BV and Oiltanking Malta Limited (together, the "OT Companies").
The consideration will be financed by €115m of equity from 3i Infrastructure together with a €190m debt facility arranged by RBC Capital Markets. The transaction is conditional upon the approval of the German Federal Cartel Office and completion is expected by the end of August.
The OT Companies provide oil tank storage services in two of the three world oil trading and refining hubs, Singapore and Amsterdam, as well as in Malta, which is located at the centre of the Mediterranean trade routes. Their clients include private and state oil companies, refiners, petrochemical companies and traders in petroleum products and chemicals.
The OT Companies will continue to be led by their current managing directors, Rutger van Thiel, Coen Huebner and Leddy Evangelista in Singapore, Amsterdam and Malta, respectively. The management and operational control of the facilities will be retained by Oiltanking GmbH. As a result of the transaction, 3i director Alistair Ray will take a seat on the board of each of the three businesses.
Following this transaction, 3i Infrastructure will have invested just over half of the net proceeds raised at the IPO within a four-month time period and remains on track with its objective to invest in the two-year period following the IPO.
Michael Queen, Managing Partner and head of Infrastructure at 3i Group, commented on the deal:
"This investment provides geographical diversity across three strategic locations and also partners us with a highly reputable, independent player in the global tank storage market that boasts a first-class management team. The international reach of the 3i Infrastructure Investment Adviser's network in Asia, Germany, the Netherlands and the UK, as well as our experience as a minority investor, were key to us being able to source and recommend this opportunity to 3i Infrastructure."
"Storage of petroleum products is vital for the smooth operation of the global supply chain for refined oil products," said Peter Sedgwick, Chairman of the 3i Infrastructure board. "This is an opportunity providing attractive growth prospects as there is significant projected growth in sea, air, truck, rail and car transportation to underpin demand for petroleum products into the foreseeable future."
Lexicon Partners acted as financial advisers to 3i Infrastructure on the deal, and Clifford Chance provided legal advice.
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NOTES TO EDITORS
About 3i Infrastructure Limited
3i Infrastructure Limited is a Jersey-incorporated investment company, admitted to the London Stock Exchange in March 2007, which provides financial and strategic support to infrastructure businesses. 3i Infrastructure, which is exclusively advised by 3i Investments plc, a subsidiary of 3i Group, aims to build a diversified portfolio of infrastructure investments across the globe, but with an initial focus on Europe, North America and Asia.
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital, Infrastructure and Quoted Private Equity ("QPE") and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
About Oiltanking GmbH
Oiltanking, a wholly-owned subsidiary of Marquard & Bahls, is one of the world's largest independent tank storage providers for petroleum products and chemicals, owning and operating 73 terminals in 21 countries across four continents. The Hamburg, Germanybased company has over 35 years of international experience in the development and operation of oil storage sites. The group's overall capacity is approximately 12 million cubic metres.