Kuwait sovereign fund’s UK unit to buy NSMP for $1.7bn

Kuwait skyline: Wren House, the London-based infrastructure investment arm of the Kuwait Investment Authority (KIA), fought off rival bids to buy oil and gas pipeline firm North Sea Midstream Partners (NSMP). (AFP)
Updated 23 July 2018
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Kuwait sovereign fund’s UK unit to buy NSMP for $1.7bn

  • London-based infrastructure investment arm of the Kuwait Investment Authority fought off rival bids to buy oil and gas pipeline firm
  • NSMP owns a 67 percent interest in the SIRGE pipeline that transports natural gas from the West of Shetlands basin

The British infrastructure arm of Kuwait’s sovereign wealth fund has agreed to buy oil and gas pipeline firm North Sea Midstream Partners (NSMP) for around £1.3 billion ($1.7 billion) from ArcLight Capital, according to two sources.
Wren House, the London-based infrastructure investment arm of the Kuwait Investment Authority (KIA), fought off bids from JP Morgan, Blackstone, and private equity fund KKR to buy NSMP, according to one of the sources.
“Wren House was bidding against some very big players and they simply offered the best terms,” said the source. A spokesman for Wren House could not be reached for immediate comment.
Its bid was lower than one other but it offered better overall terms, according to one of the sources.
The current management team, including NSMP CEO Andy Heppel, will remain, the source said.
NSMP was valued at around £1.2 billion to £1.3 billion ($1.6 billion to $1.7 billion), the sources said.
Bank of America Merrill Lynch advised ArcLight on the transaction. Patrick de Loe, Merrill’s managing director of EMEA infrastructure, declined to comment.
Freshfields Bruckhaus Deringer was ArcLight’s legal adviser. Wren House was advised by Jefferies and Macquarie Capital. Its legal adviser was Slaughter and May.
The Sovereign Wealth Fund Institute ranks KIA as the world’s fourth-biggest sovereign fund, managing $592 billion. Only Norway, China and United Arab Emirates have bigger sovereign funds.
Wren House is headed by Hakim Drissi Kaitouni, a former investment banker who worked at Bank of America Merrill Lynch in London and New York.
Its other investments in the United Kingdom include stakes in Associated British Ports, London City Airport and Thames Water.
NSMP owns a 67 percent interest in the SIRGE pipeline that transports natural gas from the West of Shetlands basin and a 100 percent interest in the FUKA pipeline which transports gas from the SIRGE pipeline and various fields in the northern and central North Sea.
NSMP also owns the St. Fergus Gas Terminal and Teesside Gas Processing Plant. NSMP counts the Rhum gas field, in the North Sea and which is 50 percent owned by the Iranian Oil Company, among its clients.


UAE’s Network International shrugs off Brexit to list shares in London

Updated 21 March 2019
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UAE’s Network International shrugs off Brexit to list shares in London

  • The planned share sale comes at an uncertain time in the UK
  • The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore

DUBAI: Network International, the UAE payments processor, has committed to a London IPO next month in what would be the UK’s first big share sale of the year.
The company intends to have a free float of at least 25 percent and admission to the London Stock Exchange is expected to take place in April, Network International said in a regulatory filing on Thursday.
The planned share sale comes at an uncertain time in the UK where there is still no clarity around whether Britain will leave the EU or not at the end of the month.
VPS Healthcare, the Abu Dhabi-based hospital operator, is reconsidering plans to list in London due to uncertainty surrounding Brexit, Bloomberg reported on Thursday citing a person familiar with the matter.
The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore.
Emirates NBD, Dubai’s biggest bank, owns 51 percent of Network International while Warburg Pincus and General Atlantic jointly own the rest.
The share sale will be a key test of investor demand for new listings in London after a subdued 2018 across most European markets.
“Volatility has continued in recent months, driven by the uncertainty around trade between the US and China, the wider geopolitical climate and the potential end of the current bull run,” said Peter Whelan, partner and UK IPO Lead at PwC in a recent report.
“We are seeing a healthy number of companies preparing for an IPO in 2019 despite the ongoing Brexit negotiations which have clearly impacted IPO activity on the London market.”
The payment processor reported earnings of $298 million last year according to its website, up from $262 million a year earlier. It does not disclose net income figures.
The company handles digital payments across the Middle East, which generate three quarters of its total earnings.
Last year it processed some $40 billion in payments for more than 65,000 merchants.
Its key markets in the region include the UAE and Jordan it says that Saudi Arabia offers “significant opportunities.” It also offers services in 40 African countries with Egypt, Nigeria and South Africa being its most important segments on the continent.