Today's Edition
ABU DHABI (ALETIHAD)
Lunate, an Abu Dhabi-based alternative investment manager with $105 billion in assets under management, announced on Tuesday its intent to acquire a minority stake in ADNOC Gas Pipelines, indirectly held by Snam, Europe's leading gas infrastructure operator.
This transaction, subject to the signing of a definitive agreement and potential shareholder approvals, will be executed through Lunate's Long-Term Capital Fund I, which seeks to provide investors with attractive cash yields and long-term capital appreciation.
ADNOC Gas Pipelines, a subsidiary of ADNOC, operates a critical network of 38 pipelines spanning 982 kilometres across the UAE. This network serves as a vital link between ADNOC's upstream assets and local off-takers, generating stable and predictable cash flows.
Snam acquired its stake in ADNOC Gas Pipelines in 2020 alongside a consortium of investors, including GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board, and NH Investment & Securities. During this period, Snam has leveraged its expertise and innovative solutions to enhance the asset's value and contribute to the UAE's broader energy system.
Stefano Venier, Chief Executive Officer of Snam, commented: "The sale of our stake in ADNOC Gas Pipelines aligns with our recently unveiled strategic plan, which prioritises the development of pan-European infrastructure for the period 2025-2029. This divestment allows us to capitalise on the value of assets outside our core European operating regions."
Murtaza Hussain, Managing Partner at Lunate, stated: "ADNOC Gas Pipelines represents a cornerstone asset within the UAE's energy infrastructure. We are delighted to strengthen our partnership with ADNOC through this investment and fulfil Lunate's mandate of providing investors access to high-quality assets."
