Abu Dhabi-based investment company Multiply Group has announced it is acquiring a minority interest in the Houston, Texas-based Breakwater Energy for AED367 million ($100 million).
Breakwater Energy is a wholly owned subsidiary of EIG Partners, a leading institutional investor in the global energy and infrastructure sectors. In March this year, EIG acquired a 25 percent interest in Repsol E&P, a gas-weighted exploration and production company, through Breakwater Energy.
Repsol has a presence in 15 countries with a diversified portfolio of upstream assets comprises of more than 550,000 boe/d of production and operations in 15 countries.
The acquisition makes the group part owner of the highly profitable and cash-generative, diversified global upstream portfolio with significant gas weighting and reserve life, offering an attractive dividend profile.
Breakwater Energy completed the acquisition of Repsol E&P for total consideration of approximately $4.8 billion, including debt. Repsol has retained the remaining 75 percent and plans to deploy the proceeds of this transaction to expand its low-carbon platforms around the world.
Repsol and EIG also foresee the potential to list the business in the US from 2026 onward, subject to favourable market conditions.
Samia Bouazza, Group CEO and Managing Director said: “The minority stake in Repsol E&P through EIG’s Breakwater Energy is a good fit for our Multiply+ portfolio, which identifies attractive dividend-paying investments with mid-to-short term horizon.
“Repsol’s management has a strong, proven track record and EIG is one of the world’s leading energy investors, which provides us confidence in their collective ability to deliver on Breakwater Energy’s ambitious plans.
“Multiply Group is well-positioned to continue exploring high-value acquisition opportunities and Repsol’s plans to utilise this investment to fuel low-carbon energy projects make this transaction particularly interesting for us.”
The investment was thorough Multiply+. The group has been deploying capital across its two distinct arms: Multiply and Multiply+. Abu Dhabi-based investment holding company currently operates and invests in its core verticals (mobility, energy and utilities, media and communications, and beauty and wellness), while Multiply+, its sector-agnostic and opportunistic investment arm, looks to target double-digit returns across several asset classes.
R Blair Thomas, CEO of EIG, added: “Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship. We are honoured to partner with leading investors like Multiply on that journey.”
The company invested AED10 billion in Abu Dhabi National Energy Company (TAQA), last year.
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