Abu Dhabi, UAE–Multiply Group, an Abu Dhabi-based investment holding company, is acquiring a minority stake in Breakwater Energy for $100 million.
Through this acquisition, Multiply Group will become part owner of a highly profitable and cash-generative, diversified global upstream portfolio with significant gas weighting and reserve life, offering an attractive dividend profile.
EIG, a leading institutional investor in the global energy and infrastructure sectors, through its wholly owned subsidiary Breakwater Energy, acquired a 25 percent interest in Repsol E&P, a gas-weighted exploration and production company comprising Repsol’s entire global upstream oil and gas business.
Repsol’s globally diversified portfolio of upstream assets comprises of more than 550,000 boe/d of production and operations in 15 countries.
Breakwater Energy completed the acquisition of Repsol E&P in March 2023 for total consideration of approximately $4.8 billion, including debt, with Repsol retaining the remaining 75 percent.
Repsol plans to deploy the proceeds of this transaction to expand its low-carbon platforms around the world.
Furthermore, Repsol and EIG foresee the potential to list the business in the United States from 2026 onward, subject to favorable market conditions.
Commenting on the acquisition, Samia Bouazza, Group CEO and Managing Director at Multiply Group, said, “The minority stake in Repsol E&P through EIG’s Breakwater Energy is a good fit for our Multiply+ portfolio, which identifies attractive dividend-paying investments with mid-to-short term horizon. Repsol’s management has a strong, proven track record and EIG is one of the world’s leading energy investors, which provides us confidence in their collective ability to deliver on Breakwater Energy’s ambitious plans.
“Multiply Group is well-positioned to continue exploring high-value acquisition opportunities and Repsol’s plans to utilize this investment to fuel low-carbon energy projects make this transaction particularly interesting for us.”
R. Blair Thomas, CEO of EIG, stated, “Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship. We are honored to partner with leading investors like Multiply on that journey.”
Multiply Group has been deploying capital across its two distinct arms: Multiply and Multiply+.
Multiply currently operates and invests in its core verticals (Mobility, Energy and Utilities, Media and Communications, and Beauty and Wellness), while Multiply+, its sector-agnostic and opportunistic investment arm, looks to target double-digit returns across several asset classes.
A year ago, Multiply Group invested $2.72 billion in Abu Dhabi National Energy Company (TAQA), an integrated utility champion in the EMEA region. In June 2023, TAQA announced its acquisition of SWS Holding for AED1.7bn, expanding the company into the wastewater network and treatment business and boosting its position as Abu Dhabi’s fully integrated utility.