An investment holding company based in Abu Dhabi, the Multiply Group, has acquired a minority interest in Breakwater Energy for AED367 million ($100 million). This investment took place through the Group’s sector-agnostic arm, Multiply+.
Due to this acquisition, the Group will partially own a highly profitable and cash-generative, diversified global upstream portfolio with significant gas weighting and reserve life. Such an offering provides the Group with an attractive dividend profile.
The Group has two distinct arms: Multiply and Multiply+. The first currently operates and invests in its core verticals (Mobility, Energy & Utilities, Media & Communications, and Beauty & Wellness). While Multiply+, its sector-agnostic and opportunistic investment arm, looks to target double-digit returns across several asset classes.
Group CEO and Managing Director at Multiply Group, Samia Bouazza, 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 have 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 makes this transaction particularly interesting for us.”
CEO of EIG, R. Blair Thomas, 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.”
EIG, Breakwater Energy and Repsol –
The company EIG entirely owns its subsidiary Breakwater Energy.
EIG is an institutional investor in the global energy and infrastructure sectors.
EIG has acquired a 25% interest in Repsol E&P through Breakwater Energy. The mentioned acquisition completed in March of 2023 for approx. $4.8 billion, including debt. Repsol retains 75%. The company Repsol plans to use the proceeds to expand its low-carbon platforms.
Repsol E&P is a gas-weighted exploration & production company comprising Repsol’s entire global upstream oil and gas business. It has a portfolio of globally diversified upstream assets. The portfolio claims to cover more than 550,000 boe/d of production and operations in 15 countries.
In the coming future, Repsol and EIG plan to utilize the potential to list business in the United States from 2026 onward, given market conditions remains agreeable.
source: https://multiply.ae/news-insights/news/multiply-group-invests-aed-367-million-eigs-breakwater-energy
