3i Infrastructure plc announces investment in Tampnet
27 July 2018
3i Infrastructure plc ("3i Infrastructure" or "the Company") today announces that it will invest approximately €220 million for the acquisition of a stake in Tampnet AS ("Tampnet"), the leading independent offshore telecoms network operator in the North Sea and the Gulf of Mexico. 3i Infrastructure is investing in a consortium with Danish pension fund ATP, with each party acquiring up to 50% of Tampnet. The Company's investment adviser, 3i Investments plc, will manage the investment on behalf of the consortium. The Tampnet management team will also invest to acquire a minority shareholding. Completion is subject to regulatory approvals in Europe and the USA.
Founded by Equinor (formerly known as Statoil) in 2001, Tampnet provides high speed, low latency and resilient data connectivity offshore through a comprehensive network of fibre optic cables, 4G base stations, and microwave links. It operates across four main business areas: fixed installations, mobile rigs and vessels, roaming for offshore workers and international carriers. The majority of its business involves providing fixed fibre links to oil platforms. Tampnet's fibre optic links provide oil producers with mission-critical reliable communications in an often hostile environment.
Tampnet generates c.85% of its business in the North Sea and c.15% in the Gulf of Mexico, and serves more than 50 customers including oil and gas operators, offshore service providers and telecom operators. Tampnet also has the opportunity to grow into new segments such as offshore wind, commercial vessels and the point-to-point carrier segment.
Richard Laing, Chairman, 3i Infrastructure plc, commented:
"Tampnet is the Company's first investment in fibre telecoms infrastructure and provides further geographical diversity through its operations in the Gulf of Mexico. The investment offers a good yield profile as well as strong near-term growth prospects. It is an attractive addition to the portfolio."
Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc, Investment Adviser to the Company, added:
"As operators adopt more advanced technologies and utilise IT applications more intensively to improve efficiency and extend hydrocarbon field lives, the low latency, high bandwidth of fibre becomes even more essential. We look forward to working with Tampnet's experienced and high quality management team to support the future growth of this business."
-Ends-
For further information, contact:
Richard Laing |
Chairman, 3i Infrastructure plc |
+44 1534 847 410 |
Thomas Fodor |
Investor enquiries |
+44 20 7975 3469 |
Kathryn van der Kroft |
Media enquiries |
+44 20 7975 3021 |
Notes to editors:
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company's market focus is on economic infrastructure and greenfield projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Adviser to 3i Infrastructure plc.
About ATP
ATP is Denmark's largest pension and social security provider and one of Europe's largest pension providers, with more than €100 billion assets under management invested in bonds, equities, real estate and infrastructure assets, among others. In recent years, ATP has made significant investments in vital infrastructure such as the Copenhagen Airport, the renewable energy company DONG Energy, now Orsted as well as the telecommunication company TDC.
ATP also administers key welfare benefits and schemes on behalf of the Danish state, the local authorities in Denmark and the social partners. ATP is the largest administration provider in the Nordic countries, managing two thirds of welfare benefits disbursed in Denmark.
