Lunate set to acquire Snam’s minority stake in Adnoc Gas Pipelines: Abu Dhabi alternative investment firm Lunate is set to acquire a 6% stake in Adnoc Gas Pipelines from Italian gas network operator Snam SpA for an undisclosed sum through Lunate’s Long-Term Capital Fund I, according to a joint statement (pdf). The sale is subject to the signing of a definitive sale and purchase agreement along with securing the necessary regulatory approvals, including potential shareholder rights exercises.

The value of the acquisition has not been disclosed, but Italian investment bank Mediobanca estimated in a client note picked up by Reuters that the stake could be valued at USD 200 mn, with a book value of EUR 135 mn.

Background: Snam has been mulling the sale of its entire minority stake in the Adnoc unit, which it holds indirectly, since last year as part of a broader rationalization strategy to divest from non-core assets outside European energy corridors.

Lunate ♥️ Adnoc: Lunate has previously acquired a 40% stake in Adnoc’s oil pipeline asset network from US private equity giants BlackRock and KKR & Co in April.

More Adnoc shares could be up for grabs soon: Global Infrastructure Partners (GIP), Adnoc Gas Pipelines’ largest foreign shareholder, is said to be working with advisors to gauge interest in its holding, sources told Bloomberg last year. A GIP-led consortium had acquired 49% of the company back in 2020 in a transaction that valued the entire network, including debt, at almost USD 21 bn.

About Adnoc Gas Pipelines: The Adnoc subsidiary’s portfolio includes a network of 38 gas pipelines spanning 982 km across the UAE, playing a significant role in connecting upstream assets to domestic off-takers.

ADVISORS- Rothschild is acting as Lunate’s financial advisor on the transaction, while Bank of America is financial advisor for Snam, Reuters reports.

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