Mubasher: The UK-based arm of the Kuwait Investment Authority (KIA) Wren House has agreed to purchase North Stream Midstream Partners from the energy-focused private equity company ArcLight Capital Partners.
Wren House agreed to buy ArcLight’s entire stake in North Stream Midstream Partners, according to a statement on Tuesday.
Although the company has not yet provided details of the purchase transaction, several unnamed sources told Reuters that the deal is valued at $1.7 billion, winning out bidders including JP Morgan and Blackstone.
Reuters has reported that the bid provided by Wren House was lower than others but offered better overall terms.
Founded in 2012, North Stream Midstream Partners operates and owns stakes in four large-scale natural gas transportation and processing assets in and around the North Sea, including a 67% operated interest in the Shetland Island Regional Gas Export System pipeline and a 100% operated interest in the Frigg UK pipeline.
The purchase transaction is expected to complete in 2018, following the receipt of merger clearance.
