I Squared Eyes Full Ownership of Europe Gas Storage Firm

Global infrastructure investment manager I Squared Capital has entered into exclusive negotiations to acquire the remaining 55 percent stake in Rubis Terminal that it does not already own from French energy group Rubis SCA.

If completed, the transaction would bring I Squared’s ownership of Rubis Terminal to 100 percent. The equity value of the stake to be acquired is $408.34 million (EUR 375 million), the company said in a recent news release. The completion of the transaction, expected by mid-year 2024, is subject to customary regulatory approvals including antitrust authorities and foreign investment committees.

Rubis Terminal is one of the leading players in Europe in the bulk liquid and gas storage sector with 141.26 million cubic feet (4 million cubic meters) of storage capacity across France, Spain and the Northern European hubs of Antwerp and Rotterdam, according to the release.

“With facilities at the heart of some of the most important trading hubs in Europe, Rubis Terminal plays a critical role in supporting the energy transition and ensuring security of supply”, Mohamed El Gazzar, Senior Partner at I Squared Capital, said. “This transaction underscores I Squared’s confidence in Rubis Terminal’s transition strategy and our commitment to its continued growth”.

I Squared initially invested in Rubis Terminal in January 2020, purchasing 4 percent of the equity stake held by Rubis to implement a strategy of diversification and geographic expansion, it said. Over the last four years, Rubis Terminal successfully acquired and integrated TEPSA, a leading storage provider to the chemical and biofuel sectors in Spain, disposed of an oil-weighted terminal in Turkey, and invested nearly $163.34 million (EUR 150 million) into the expansion of primarily chemical and biofuel capacities across all geographies.

Brazil Solar Investment

Earlier in the year, I Squared agreed to invest up to $400 million in Órigo Energia, a leader in distributed energy generation in Brazil.

The investment in Órigo will fund the construction of over 2 gigawatts (GW) of distributed solar generation projects in 20 states across Brazil with an estimated capital expenditure of $1.2 billion (BRL 6 billion). The transaction will give I Squared a 49 percent ownership stake in Órigo Energia and is expected to close in the first quarter, according to an earlier news release.

“This is a landmark transaction for I Squared,” Gautam Bhandari, Managing Partner and Chief Investment Officer for I Squared Capital, said. “We have ambitious plans for renewables and are leveraging our extensive experience in this space to build a leading global renewables-focused platform consistent with I Squared’s overall approach to investing”.

“This investment will allow Órigo to accelerate the construction of solar farms, expanding its service to thousands of new customers and over 20 states in the coming years”, Órigo Energia CEO Surya Mendonça said. “It will also reinforce our technology and customer experience focus, in line with the purpose of making solar energy accessible to small and large businesses as well as retail customers, while generating savings and driving Brazil to a greener future”.

Miami-based I Squared describes itself as a leading independent global infrastructure investment manager with over $38 billion in assets under management focused on investing in North America, Europe, Asia, and Latin America.

To contact the author, email rocky.teodoro@rigzone.com