Borealis Infrastructure has confirmed its previously announced acquisition of a stake in Compañía Logística de Hidrocarburos (CHL Group), a Spanish oil products transportation and storage business, from Cepsa. It also announced an agreement to buy the CHL stake currently owned by Global Infrastructure Partners. No financial terms were disclosed for either purchase, which will give Borealis a combined 24.15 percent interest in CHL. Borealis, the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS), said the deals mark the firm’s first investment in Spain and add to its European infrastructure portfolio.
Borealis Infrastructure Announces Investment in CLH
TORONTO, ONTARIO–(Marketwired – Jan. 27, 2016) – Borealis Infrastructure announced today that it has agreed to acquire a 24.15% stake in Compañía Logística de Hidrocarburos (“CLH”) from Cepsa and Global Infrastructure Partners. The transaction marks Borealis Infrastructure’s first investment in Spain, and adds to its European infrastructure portfolio in the UK, Germany, Sweden, Finland and the Czech Republic.
CLH is the leading company for refined oil products transportation and storage in Spain, where it owns and operates a network of over 4,000 km of pipelines and 40 storage facilities. The company also owns and operates the main fuel pipeline and storage network in the UK, with over 2,000 km and 16 storage facilities. CLH has an excellent track record of generating value for its customers and stakeholders.
“On behalf of Borealis Infrastructure, we are very pleased to announce our investment in CLH, a high-quality, core infrastructure business that we expect will generate stable and consistent returns for the pension plan. We look forward to working together with the management team at CLH, and see this transaction as the beginning of a long-term partnership with existing shareholders,” said Ralph Berg, Global Head of Infrastructure, OMERS Private Markets.
The acquisition of Cepsa’s 9.15% stake was completed on January 11, and the acquisition of GIP’s 15% stake is expected to close during the first quarter of 2016.
BNP Paribas acted as sole financial advisor for Borealis Infrastructure, and Clifford Chance acted as legal advisor.
About OMERS Private Markets (“OPM”)
Through its Borealis Infrastructure and OMERS Private Equity arms, OPM invests globally in infrastructure and private equity assets on behalf of the OMERS pension plan. Investments are aimed at generating superior, risk-adjusted returns to help deliver strong and sustainable pensions to OMERS members. The diversified portfolio of large scale infrastructure assets managed by Borealis Infrastructure exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services. OPM has offices in Toronto, New York, London and Sydney. OMERS is one of Canada’s largest pension funds with net assets of CAD$72 billion. For more information, please visit www.omers.com
Cepsa is an energy group fully owned by International Petroleum Investment Company (IPIC). It employs more than 10,500 people and operates at every stage of the hydrocarbon value chain. It is engaged in petroleum and natural gas exploration and production activities, refining, transport and sale of crude oil and natural gas derivatives, biofuels, co-generation and electricity sales. Cepsa has developed a world-class chemicals division that is tightly integrated with its oil refining segment, where feedstock is manufactured and sold for the production of components with high value-added, chiefly used in making new-generation plastics and biodegradable detergents. It has a prominent position in Spain and, through the continuing international expansion of its business, it also operates in 15 countries, marketing its products all over the world.
About Global Infrastructure Partners (“GIP”)
GIP is an independent infrastructure fund that invests worldwide in infrastructure assets and business in both OECD and select emerging market countries. GIP targets investments in single assets and portfolios of assets and companies in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York and London, with an affiliate in Sydney and portfolio company operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.
Photo courtesy of Cepsa