Frankfurt, 16 May 2012
A Consortium led by Macquarie Infrastructure and Real Assets, the global specialist manager of infrastructure businesses, has agreed to acquire Open Grid Europe GmbH (OGE) from E.ON.
The Consortium consists of a group of long-term investors with a strong commitment to the infrastructure sector: Macquarie European Infrastructure Fund 4, British Columbia Investment Management (bcIMC), Infinity Investments S.A. (a wholly owned subsidiary of the Abu Dhabi Investment Authority) and MEAG, the asset management arm of Munich Re and ERGO.
OGE is the owner and operator of the longest regulated supra-regional gas transmission network in Germany, with approximately 12,000 km of gas pipeline and 27 compressor stations. OGE transports almost 62.5 billion cubic metres of natural gas annually, being approximately 70 per cent of Germany’s total national shipping volume, and serves 450 national and international customers. OGE’s pipeline network spans the entire country and is particularly important to pan-European gas flows as well as domestic transmission, with OGE’s compressor station in Waidhaus on the German-Czech border being one of the largest European inlets for natural gas from Russia.
Edward Beckley, European Head of Macquarie Infrastructure and Real assets (MIRA) said: “OGE is a well-managed, high quality core infrastructure business operating in a stable regulatory environment. It is a strong fit for the responsible, long-term investment objectives of the Consortium.
“OGE’s geographical footprint and the quality of the network will play an increasingly important role as a European hub transmission operator with the evolution of European gas flows. We look forward to working with OGE’s experienced management team to ensure OGE continues to play a leading role in the German gas industry for the benefit of the customers and the communities it serves.”
Doug Pearce, Chief Executive Officer and Chief Investment Officer at bcIMC said: “OGE is well-matched with bcIMC’s objectives of achieving sustainable returns through investment in stable infrastructure companies and assets. Long-term, responsible ownership is an important principle of our and the Consortium’s investment practices and one under which we believe essential service businesses such as OGE will prosper.”
MEAG's involvement is part of Munich Re's infrastructure programme, through which Munich Re intends to invest up to € 1.5 billion in the coming years. "With infrastructure we are diversifying and adding sustainable investments to our portfolio, with stable long-term returns," says Dr. Thomas Kabisch, Chief Executive Officer and Chief Investment Officer at MEAG.
The completion of the transaction remains subject to applicable regulatory approvals.
Financial Advisers to the Consortium were Macquarie Capital and Royal Bank of Canada.
Macquarie Infrastructure and Real Assets (MIRA), part of Macquarie Group, is a leading global alternative asset manager specialising in infrastructure funds, other real asset funds and customised accounts. Established in 1996, it is the largest manager of infrastructure assets in the world with €71bn of assets under management and 92 infrastructure businesses including 14 major utilities (of which six are large gas networks) worldwide. MIRA’s team of experienced professionals have in-depth operational expertise contributing significantly to the success of the businesses in which it invests. MIRA is a committed investor in Germany, with investments including the Thyssengas gas network, energy metering company Techem, and the oil storage operator TanQuid.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 14,200 people in 28 countries and has assets under management of €254bn.
*As at 31 March 2012
bcIMC is an independent investment management corporation that manages a globally diversified investment portfolio of C$91.1 billion as at December 31, 2011. Based in Victoria, Canada and supported by industry-leading expertise, bcIMC invests in all major asset classes including infrastructure and other strategic investments. bcIMC’s clients include public sector pension plans, public trusts, and insurance funds. bcIMC’s infrastructure program, with over C$4 billion in investments as at December 31, 2011, is a long-term investor in leading utilities such as Puget Energy in the U.S.A., Thames Water Utilities Limited, Britain’s largest water and wastewater company, Transelec S.A., Chile’s largest transmission utility, U.S.-based Aquarion Water, and the Corix Group of Companies, a North American multi-utility and services company.
bcIMC is committed to incorporating environmental, social and governance considerations into its practices and is a founding signatory to the United Nations Principles for Responsible Investment and a member of the Canadian Coalition for Good Governance. For more information, visit www.bcimc.com.
MEAG stands for all investment activities of Munich Re and ERGO. It also offers its profound know-how to institutional investors outside the company group and private clients. MEAG is represented in Europe, Asia and North America and deals in all major asset classes such as bonds, equities and real estate. Our investment experts follow a prudent, risk-based approach with the aim of generating strong long-term performance. Key factors helping MEAG achieve this goal are the close cooperation with and trust we enjoy from our clients both within and outside the Group. MEAG currently manages assets to the value of around € 222 billion, about € 11 billion of which for private and institutional investors outside the Group.
Our infrastructure investment plan has an intended volume of €1.5 billion in the medium term and will invest worldwide, among other things, in core segments like transportation, utilities and communications. Our competitive advantage is our know-how from the core re-insurance business. In a milestone transaction in the infrastructure sector, MEAG already acquired a participation in the high-voltage grid operator Amprion in 2011.
Infinity Investments is a company that invests in European infrastructure assets and whose sole shareholder is the Abu Dhabi Investment Authority (ADIA). Established in 1976, ADIA is a globally diversified investment institution that is wholly owned by the Government of Abu Dhabi. ADIA's Infrastructure team has a core strategy to acquire minority equity stakes alongside proven partners in assets with market-leading positions and relatively stable cash flows. These include utilities, such as water, gas and electricity distribution and transmission companies, as well as transport infrastructure, such as toll roads, ports, airports and freight railroads. ADIA does not seek to control or operate the assets in which it, or its subsidiaries, invests.