Abu Dhabi said to near pipeline stake sale to GIP-Brookfield consortium

Photo: Adnoc website

Abu Dhabi’s state-owned energy producer is close to selling a multibillion-dollar stake in its natural gas pipelines to an investor group backed by Global Infrastructure Partners and Brookfield Asset Management Inc., in what is set to be one of the year’s biggest infrastructure deals.

The buyers could sign an agreement with Abu Dhabi National Oil Co. for a 49% stake in the pipelines this month, according to people with knowledge of the matter, who asked not to be identified as discussions are private. A deal could value the pipelines at more than $15 billion, including debt, they said.

Equity financing has been arranged and the bidders are negotiating the terms of a debt package with banks, the people said. While discussions are advanced and ongoing, the timing and valuation could still change, according to the people.

The GIP consortium also includes Italian infrastructure operator Snam SpA, Ontario Teachers’ Pension Plan, Singapore sovereign fund GIC Pte and South Korea’s NH Investment & Securities Co.

Representatives for Adnoc, GIP, Brookfield, Ontario Teachers’, Snam and NH Investment declined to comment. Representatives for GIC did not immediately respond to requests for comment.

Infrastructure investors have been defying the dealmaking downturn brought on by the coronavirus pandemic to deploy capital. The Adnoc deal could surpass KKR & Co.’s agreement in March to buy the waste-management arm of U.K. utility owner Pennon Group Plc for 4.2 billion pounds ($5.2 billion). It could also top plans by Portugal’s biggest oil company, Galp Energia SGPS SA, to sell its gas distribution assets for as much as 1.5 billion euros ($1.7 billion).

Abu Dhabi has been opening up the operations of its state-owned oil producer to foreign partners as part of a push to diversify its economy and generate additional sources of funding. Adnoc has already sold shares in its distribution unit and brought in international investors to its refining and oil field services business. KKR and BlackRock Inc. agreed last year to invest $4 billion in Adnoc’s oil pipeline network. GIC bought a stake in the business later.

The GIP consortium was seeking an $8 billion loan to help finance the purchase of the stake in the gas pipelines, people familiar with the matter said in April.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.