Through the acquisition of the stake in Breakwater Energy, a wholly owned subsidiary of EIG, the Abu Dhabi-based investment holding company will partly own a portfolio of highly profitable and cash-generative, diversified upstream assets
Multiply to acquire minority stake in Breakwater Energy. (Credit: Maria Lupan on Unsplash)
Multiply Group, through its sector-agnostic investment arm Multiply+, is set to acquire a minority interest in water management solutions provider Breakwater Energy for AED367m ($100m).
Through the acquisition, the Abu Dhabi-based investment holding company will partly own a portfolio of highly profitable and cash-generative, diversified upstream assets.
Breakwater Energy is a wholly owned subsidiary of EIG, an institutional investor in the global energy and infrastructure sectors.
Through its subsidiary, EIG has acquired a 25% stake in Repsol E&P, an exploration and production company comprising Repsol’s entire upstream oil and gas business.
Repsol’s diversified portfolio of upstream assets comprises more than 550,000boe/d of production and operations in 15 countries.
Breakwater Energy completed the acquisition of Repsol E&P in March this year, for total consideration of around $4.8bn, with Repsol retaining the remaining 75% stake.
Multiply Group CEO and managing director Samia Bouazza said: “The minority stake in Repsol E&P through EIG’s Breakwater Energy is a good fit for our Multiply+ portfolio, which identifies attractive dividend-paying investments with mid-to-short term horizon.
“Repsol’s management has a strong, proven track record and EIG is one of the world’s leading energy investors, which provides us confidence in their collective ability to deliver on Breakwater Energy’s ambitious plans.
“Multiply Group is well-positioned to continue exploring high-value acquisition opportunities and Repsol’s plans to utilise this investment to fuel low-carbon energy projects makes this transaction particularly interesting for us.”
Multiply Group has been deploying capital across its two business units, Multiply and Multiply+.
Multiply operates and invests in Mobility, Energy and Utilities, Media and Communications, and Beauty and Wellness. Multiply+ targets double-digit returns across several asset classes.
Last year, Multiply Group invested AED10bn in Abu Dhabi National Energy Company (TAQA), an integrated utility champion in the EMEA region.
Last month, TAQA expanded its operations into the wastewater network and treatment business with the acquisition of SWS Holding for AED1.7bn.
EIG CEO R Blair Thomas said: “Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship. We are honoured to partner with leading investors like Multiply on that journey.”