Antin Infrastructure Partners has acquired the UK’s Central Area Transmission System gas pipeline (CATS) for £562 million (€704 million; $953 million) from BG Group, a London-listed gas company.
The Paris-based fund manager will buy BG’s 62.78 percent interest in CATS for a consideration comprising £523 million to be paid on completion of the transaction and a deferred amount of £39 million. The deal is expected to close in the second half of 2014.
Located in the North Sea, CATS comprises a fixed-riser platform linked to the Everest oil and gas platform, a 404-kilometre, 1,700 million-standard-cubic-feet-of-gas-per-day (mmscfd) capacity subsea pipeline and a two-train onshore gas processing terminal at Teesside with a capacity of 1,200 mmscfd.
The deal is the first sealed by the Antin’s Fund II, which reached its final close last week on €2 billion. The total commitments, amounting to the vehicle’s hard cap, surpassed the fund’s initial target by €500 million.
CATS is the second oil and gas midstream asset acquired by Antin, after the firm acquired a stake in French oil storage business Pisto in February 2010 from Lombard Odier Macquarie Infrastructure Fund. Antin and Macquarie, which now jointly control the company, successfully refinanced €480 million of Pisto’s senior debt in July 2012.
The investment is held in Antin’s Fund I, which closed on €1.1 billion in 2007.