Oiltanking GmbH partnership

3 Aug 2007 07:00

3i Infrastructure Ltd02 August 2007 2 August 2007 3i Infrastructure partners with Oiltanking GmbH 3i Infrastructure Limited ("3i Infrastructure") has today signed agreements withOiltanking GmbH and the Malta Freeport Corporation Limited to acquire a 45 percent interest in Oiltanking Singapore Limited, Oiltanking Amsterdam BV andOiltanking Malta Limited (together, the "OT Companies"). The consideration willbe financed by €115m of equity from 3i Infrastructure together with a €190m debtfacility arranged by RBC Capital Markets. The transaction is conditional uponthe approval of the German Federal Cartel Office and completion is expected bythe end of August. The OT Companies provide oil tank storage services in two of the three world oiltrading and refining hubs, Singapore and Amsterdam, as well as in Malta, whichis located at the centre of the Mediterranean trade routes. Their clientsinclude private and state oil companies, refiners, petrochemical companies andtraders in petroleum products and chemicals. The OT Companies will continue to be led by their current managing directors,Rutger van Thiel, Coen Huebner and Leddy Evangelista in Singapore, Amsterdam andMalta, respectively. The management and operational control of the facilitieswill be retained by Oiltanking GmbH. As a result of the transaction, 3i directorAlistair Ray will take a seat on the board of each of the three businesses. Following this transaction, 3i Infrastructure will have invested just over halfof the net proceeds raised at the IPO within a four-month time period andremains on track with its objective to invest in the two-year period followingthe IPO. Michael Queen, Managing Partner and head of Infrastructure at 3i Group,commented on the deal: "This investment provides geographical diversity acrossthree strategic locations and also partners us with a highly reputable,independent player in the global tank storage market that boasts a first-classmanagement team. The international reach of the 3i Infrastructure InvestmentAdviser's network in Asia, Germany, the Netherlands and the UK, as well as ourexperience as a minority investor, were key to us being able to source andrecommend this opportunity to 3i Infrastructure." "Storage of petroleum products is vital for the smooth operation of the globalsupply chain for refined oil products," said Peter Sedgwick, Chairman of the 3iInfrastructure board. "This is an opportunity providing attractive growthprospects as there is significant projected growth in sea, air, truck, rail andcar transportation to underpin demand for petroleum products into theforeseeable future." Lexicon Partners acted as financial advisers to 3i Infrastructure on the deal,and Clifford Chance provided legal advice. -Ends- This information is provided by RNS The company news service from the London Stock Exchange