Consortium Invests in ADNOC’s $20.7 Billion Energy Infrastructure Deal
06.23.20
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Simpson Thacher is representing a consortium of investors, comprising of Global Infrastructure Partners (“GIP”), Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam (the “Consortium”) in its energy infrastructure deal with The Abu Dhabi National Oil Company (“ADNOC”). The Consortium will invest in select ADNOC gas pipeline assets valued at $20.7 billion.
In one of the largest global energy infrastructure transactions, the Consortium will collectively acquire a 49% stake in ADNOC Gas Pipeline Assets LLC (“ADNOC Gas Pipelines”), a newly formed subsidiary of ADNOC with lease rights to 38 pipelines covering a total of 982.3 kilometers, with ADNOC holding the 51% majority stake. Under the terms of the agreement, ADNOC will lease its ownership interest in the assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff subject to a floor and a cap. The transaction will result in upfront proceeds of over $10 billion to ADNOC and is subject to customary closing conditions and regulatory approvals.
The Simpson Thacher team includes Eli Hunt, David Lieberman, Jihyun Chung, Michael Schaeppi and Benjamin Bertan (M&A – New York); Amy Mahon, Alexander Yeagley, Luca Sportelli and Jenny Leung (M&A – London); and Jon Goldstein and Tyler Robbins (Tax).