#Bermuda #Hamilton #Energy Infrastructure #Höegh Evi #Igneo Infrastructure

Igneo Infrastructure Partners to Acquire Höegh Evi Ltd.

Igneo Infrastructure Partners, a prominent player in infrastructure investment, has announced an agreement to acquire a 50% ownership interest in Höegh Evi Ltd. This acquisition is from funds managed by Morgan Stanley Infrastructure Partners (MSIP). As a critical asset in the energy sector, Höegh Evi Ltd. is known for its innovative floating energy solutions, particularly in the transfer and regasification of liquefied natural gas (LNG).

Details of the Acquisition

The deal involves Larus Holding Limited, the complete owner of Höegh Evi, where Aequitas Limited will retain its existing 50% stake. This partnership aims to enhance Höegh Evi's position in the market as a leader in energy security while simultaneously expanding its focus on clean energy solutions. The transaction, which is anticipated to close in the first half of 2025, is subject to customary regulatory approvals and closing conditions.

Morten W. Høegh, Chairman of Höegh Evi, expressed confidence in the acquisition, stating, "Höegh Evi and Aequitas deeply value the close collaboration we have had with MSIP through an extraordinary period where we strengthened our role as a market leader in LNG infrastructure and key provider of energy security in Europe."

Transition to Clean Energy

As part of its strategic shift, Höegh Evi is set to expand its capabilities and incorporate clean energy solutions into its operations. Niall Mills, Managing Partner and Global Head of Igneo Infrastructure Partners, underlined the intention to invest in floating terminal technologies, including those for ammonia, hydrogen, and carbon transport. He described Höegh Evi as a "global leader delivering floating energy infrastructure, a pioneer in the energy transition."

MSIP has recognized Höegh Evi for its strong potential as a dependable operator of floating storage and regasification terminals. During MSIP's tenure, the company significantly enhanced its market presence and commercial standing, setting the stage for future growth under new ownership.

Financial and Operational Aspects

Höegh Evi Ltd. has a significant financial footprint, having issued senior unsecured bonds listed on the Oslo stock exchange. This strategic financial approach is designed to ensure that the company can meet its obligations at maturity, including commitments to repay bonds before the transaction closes.

The transaction is anticipated to solidify Höegh Evi's leadership in the global energy landscape, emphasizing its commitment to innovation, responsible investment, and sustainable practices. Its management team, comprising approximately 900 employees worldwide, is well-equipped to lead these initiatives.

Igneo Infrastructure Partners, a seasoned investment team with substantial assets under management, aims to create long-term sustainable value in mid-market infrastructure sectors. They have been actively managing a diverse portfolio for nearly three decades, focusing on sectors essential for public goods and services.

The Path Forward

As energy demands evolve globally, the partnership between Igneo and Höegh Evi is poised to respond to pressing energy needs while adhering to principles of sustainability and innovation. The transaction marks a significant milestone not only for the involved parties but also for energy security in Europe, showcasing a collective commitment to advancing the energy transition. As such, stakeholders eagerly await the closing of this strategic acquisition, fully aware of its potential impact on the broader energy market.