Snam Divests Stake in ADNOC Gas Pipelines to Lunate
Deal News | Jan 28, 2025 | Zawya
Italy's premier gas grid operator, Snam, announced its agreement to divest its minority stake held indirectly in ADNOC Gas Pipelines to Abu Dhabi-based investment fund Lunate. This divestment aligns with Snam's strategic objective to focus on its core European energy assets, thus significantly lowering its exposure to non-European infrastructure. ADNOC Gas Pipelines, a unit of Abu Dhabi National Oil Company, comprises an extensive network of 38 pipelines spanning 982 kilometers across the UAE. Snam initially acquired nearly 6% of the company back in 2020, alongside consortium partners like GIP, GIC, and Brookfield, among others. The financial aspects of this transaction remain undisclosed, although a source suggests that Snam will realize a capital gain from the deal.
Sectors
- Energy
- Investment Management
Geography
- Italy – Snam, the company selling the stake, is headquartered in Italy, indicating the relevance of the Italian market in this transaction.
- United Arab Emirates – The ADNOC Gas Pipelines are located in the UAE, which is the focus of the divestment deal.
- Abu Dhabi – The investment fund Lunate, which is acquiring the stake, is based in Abu Dhabi, highlighting its geographical connection to the transaction.
Industry
- Energy – The article revolves around the divestment of a stake in ADNOC Gas Pipelines, which is part of the energy sector, focusing specifically on natural gas pipelines.
- Investment Management – The sale involves various investment entities including a fund, Lunate, which underlines the significance of investment management in the transaction.
Financials
- Not disclosed – No specific financial details about the transaction were made available, although it was hinted that a capital gain would be realized by Snam.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Snam | Selling Company | Company | Italy's gas grid operator that is divesting its stake in ADNOC Gas Pipelines. |
| Lunate | Bidding Company | Company | An Abu Dhabi-based investment fund acquiring the stake in ADNOC Gas Pipelines. |
| ADNOC Gas Pipelines | Target Company | Company | A subsidiary of Abu Dhabi National Company managing numerous gas pipelines in the UAE. |
| Galaxy Pipeline Assets HoldCo Limited | Consortium | Company | Consortium through which Snam and its partners hold their stake in ADNOC Gas Pipelines. |
| ADNOC | Parent Company | Company | Abu Dhabi National Company, parent of ADNOC Gas Pipelines. |
| GIP | Consortium Partner | Company | Investment fund and one of the consortium partners with Snam in holding a stake in ADNOC Gas Pipelines. |
| GIC | Consortium Partner | Company | Sovereign wealth fund of Singapore and a consortium partner in ADNOC Gas Pipelines. |
| Brookfield Asset Management | Consortium Partner | Company | Global alternative asset manager that was part of the consortium with Snam. |
| Ontario Teachers' Pension Plan Board | Consortium Partner | Company | One of the consortium partners with Snam, managing funds for a major Canadian pension plan. |
| NH Investment & Securities | Consortium Partner | Company | South Korean financial services company and consortium partner in ADNOC Gas Pipelines. |