3i Infrastructure and Danish pension fund ATP have agreed to buy Norwegian offshore communication infrastructure provider Tampnet from EQT Infrastructure.
3i Infrastructure said on Friday (27 July) that it will invest around EUR 220m of equity in Tampnet. 3i Infrastructure and ATP will each take nearly 50% of the company, with Tampnet’s management team taking a small shareholding in the company.
3i Infrastructure’s investment manager 3i Investments will manage the investment on behalf of the consortium.
Tampnet, which was founded by Norwegian oil company Equinor – formerly Statoil – in 2001 and provides fibre connections for oil rigs, reported EBITDA of NOK 356m (EUR 37.3m) for 2017 on revenues of NOK 554m. This is up from EBITDA of NOK 340m the previous year on revenues of NOK 476m.
Tampnet has around 85% of its business in the North Sea and around 15% in the Gulf of Mexico and benefits from a monopoly position as the only fibre network provider to the rigs its serves. 3i Infrastructure will look at expanding the business into other oil producing areas that do not have fibre infrastructure, it is understood.
3i Infrastructure has a large war chest after earlier this year completing sales of its stakes in Finnish heating company Elenia for around GBP 725m and its stake in UK water company Anglian Water for around GBP 395m.
ATP’s other investments include stakes in Copenhagen Airport and the Danish telecoms business TDC. EQT Infrastructure remains active in the Scandinavian telecoms sector, acquiring earlier this year Norwegian broadband fibre business Broadnet from other EQT Funds.
EQT Infrastructure was advised by Citi (financial) and Selmer and Vinson & Elkins (legal). 3i Infrastructure was advised by Deutsche Bank (financial), BAHR and Clifford Chance (legal) and Arup (technical). Allen & Overy advised the lenders.