GIP swoops on Equis in USD 5bn deal

25 October 2017 - 12:00 am UTC

Global Infrastructure Partners has emerged as the buyer of sprawling Asian renewable power business Equis Energy, announcing on Wednesday (25 October) it would pay USD 5bn in cash.

The New York infrastructure fund manager, along with PSP Investments, CIC Capital Corporation and other partners, will also take on USD 1.3bn in liabilities. The transaction needs sign-off by regulators in China, Japan, India, the Philippines, Indonesia and Thailand before it is finalised in 1Q18. 

Based in Singapore, Equis is Asia’s largest independent power producer (IPP), with a 1.9GW portfolio of operational assets and a 9.1GW development pipeline of over 115 projects. GIP claims it is the world’s biggest ever renewable energy generation deal. 

Equis was established five years ago as a renewable energy investment platform. Its limited partners decided earlier this year to sell it and took indicative bids in July. 

A host of industry buyers – including Shell, Engie and Orix as well as other infrastructure mangers including Brookfield, I Squared and APG – joined the auction’s early stages, as reported.  

GIP is acquiring 100% of Equis on behalf of Global Infrastructure Partners III, which had a final USD 15.8bn close in January and has a 20% investment in Spanish energy utility Union Fenosa. 

Equis will distribute the proceeds of the transaction to its limited partners. They include US life company MassMutual, Partners Group and University of Texas Investment Management Company, according to InframationDeals.