Singapore’s GIC in talks to join consortium eyeing Adnoc pipeline stake

Photo: Adnoc website

Global Infrastructure Partners and Brookfield Asset Management Inc. are among investors in talks to jointly bid for a stake in Abu Dhabi National Oil Co.’s natural gas pipelines, which could be valued at about $15 billion, people with knowledge of the matter said.

Italian infrastructure operator Snam SpA, Ontario Teachers Pension Plan, Singapore sovereign fund GIC Pte and a Korean firm are in discussions to join the same consortium, which has been pursuing as much as a 49% stake in the assets, the people said.

The group is the only remaining bidder for the stake — which could rank as one of this year’s largest infrastructure deals globally — after other parties including Australian fund manager IFM Investors Pty dropped out, the people said. A final deal will depend on whether the consortium can secure financing, which has become more difficult to obtain due to tightening credit markets and the decline in oil, they said.

The potential investors are currently conducting due diligence on the assets, the people said. No final agreements have been reached, and the makeup of the bidding group could change, the people said.

Representatives for Adnoc, IFM, Ontario Teachers and Snam declined to comment. Brookfield, GIC and GIP didn’t immediately respond to requests for comment.

The United Arab Emirates, of which Abu Dhabi is the capital, is among Persian Gulf oil producers using their energy assets to draw fresh capital to the region. Adnoc has already raised funds by leasing out its crude pipelines and selling shares in its service stations business. Several investors had submitted initial bids for the gas pipeline asset, Bloomberg News reported last month.

KKR & Co. and BlackRock Inc. last year agreed to invest $4 billion in Adnoc’s oil pipeline network, securing two decades of guaranteed returns. GIC also bought a stake in the business later. Adnoc has also sold a stake in its $11 billion drilling business to Baker Hughes Co.

Bloomberg

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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.