Vtti and Snam Complete Acquisition of Adriatic LNG
Deal News | Dec 17, 2024 | Legal Community Italy
Vtti and Snam, two prominent companies in the energy infrastructure sector, have successfully completed the acquisition of Adriatic LNG. This momentous acquisition was facilitated by Herbert Smith Freehills who advised Vtti, and Parola Associati who assisted Snam with corporate and M&A aspects. Adriatic LNG, which operates an offshore liquefied natural gas (LNG) regasification terminal in Porto Tolle, Italy, becomes the focus of this significant transaction. Initially announced in April 2024, Vtti signed an agreement for a majority stake while Snam exercised its pre-emption rights to increase its share from 7.3% to 30%. Upon obtaining necessary regulatory approvals, Vtti and Snam now hold 70% and 30% shares, respectively. With involvement from leading firms such as Clifford Chance for financing arrangements and Norton Rose Fulbright advising QatarEnergy, a previous stakeholder, this acquisition signifies a strategic consolidation in the LNG sector. Notarial duties were handled by Giovannella Cond of Milano Notai, ensuring all legal formalities were aptly addressed.
Sectors
- Energy Infrastructure
- Legal Advisory
- Financial Services
Geography
- Italy – The acquisition involves Adriatic LNG's terminal operations offshore Porto Tolle, Italy.
Industry
- Energy Infrastructure – The transaction involves Vtti and Snam, both active in energy infrastructure, specifically focusing on LNG regasification facilities.
- Legal Advisory – The transaction entailed significant legal advisory roles, with firms like Herbert Smith Freehills and Clifford Chance providing comprehensive legal support.
- Financial Services – Financial services firms played an essential role in arranging the financing for the acquisition, with Clifford Chance assisting on behalf of the financial institutions.
Financials
- 30% stake – Snam increased its stake in Adriatic LNG from 7.3% to 30% through exercise of pre-emption rights.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Vtti | Bidding Company / Buyer | Companies | A company active in the energy infrastructure sector, now holding 70% of Adriatic LNG. |
| Snam | Bidding Company / Buyer | Companies | An Italian natural gas infrastructure company, which increased its stake in Adriatic LNG to 30%. |
| Adriatic LNG | Target company | Companies | Owner and operator of the LNG regasification terminal offshore Porto Tolle, Italy. |
| Herbert Smith Freehills | Legal Advisor | Companies | Provided legal advisory services to Vtti for the acquisition. |
| Parola Associati | Legal Advisor | Companies | Assisted Snam with corporate and M&A aspects of the acquisition. |
| Clifford Chance | Legal Advisor for Financial Arrangers | Companies | Legal advisors for the financial institutions involved in the financing of the acquisition. |
| Norton Rose Fulbright | Legal Advisor | Companies | Advised QatarEnergy, a previous stakeholder, on legal aspects related to the transaction. |
| QatarEnergy | Selling Company | Companies | Previous stakeholder in Adriatic LNG. |
| Milano Notai | Notarial Services | Companies | Handled the notarial aspects of the transaction. |