Japanese investor takes 29% stake in Latvian gas distribution company

On April 1, investment fund Marguerite closed the sale to Japan's MM Capital Infrastructure Fund 1 of its 29.06% interest in AS Conexus Baltic Grid, the unified natural gas transmission and storage operator in Latvia, the company said April 2.

"Further to the Sale Purchase agreement signed last December and following relevant approvals from the State of Latvia, MM Capital Infrastructure Fund 1 acquired the 29.06% shareholding in AS Conexus Baltic Grid (“CBG”) of the Marguerite Fund’s wholly owned subsidiary Marguerite Gas I S.à.r.l., subject to conditions in the Energy and National Security Laws of Latvia," said a company statement.

In January 2016 the Marguerite Fund acquired a 28.97% stake in AS Latvijas Gāze (“LG”), from Uniper Ruhrgas International GmbH (formerly E.ON Ruhrgas International GmbH) which remained a shareholder in LG with an 18.26% stake.

AS Conexus Baltic Grid was set up in December 2016 when LG was split into two independent structural entities ahead of the liberalization of the Latvian gas market in April 2017, and in line with the EU’s principles of regulated market (EU Gas Directive). As a consequence, the unified natural gas transmission system and Inčukalns underground gas storage, the third largest storage facility in the EU, were transferred to AS Conexus Baltic Grid.

As previously reported by LSM in December last year, the purchaser, MM Capital Infrastructure Fund 1, is managed by MM Capital Partners, which was formed in 2018 by Marubeni Corporation, Mizuho Bank, Ltd. and Asset Management One Co., Ltd. for the purpose of operating and managing funds specialized in equity investments in overseas infrastructure assets.

Marubeni Corporation is a Japanese trading and investment firm, engaged in a broad range of global business activities including infrastructure, energy, metals and mineral resources, chemicals and food. It already invested in a number of natural gas related infrastructure assets in several countries.

The value of the deal was not revealed.

 

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