Background
- The Dragon LNG (Dragon) terminal is a state of the art LNG receiving, storing and regasifying facility based in Waterston, Milford Haven, Pembrokeshire. One of just three such terminals in the UK, Dragon forms a critical part of the nation’s energy infrastructure, providing a link between the UK and its overseas gas suppliers for a vital source of clean and reliable energy
- The facility’s maximum throughput capacity represents 10% of the UK’s total. The terminal’s position on the coast and jetty infrastructure allows deliveries by sea, with large vessels able to offload at all tides and hours
Process
- DC Advisory (DC) was mandated as M&A advisor by Ancala to acquire the asset. DC has a strong knowledge of the midstream and storage sector, having previously advised on various transactions in the space
- DC ran a focused transaction process engaging across a number of detailed work streams including:
- Process, financing, strategy and bid tactics;
- due diligence coordination;
- business plan review;
- financial modelling and valuation;
- support in negotiations with the sellers, and;
- advice on transaction documentation including SPA and the shareholders’ agreement.
Outcome
- DC ensured all work streams were successfully completed within a challenging timeframe, while maintaining an entirely confidential process
- On 2 July 2019, Ancala closed the acquisition of a 50% equity stake in Dragon from Petronas
- The transaction adds to Ancala’s strong track record in the midstream and gas distribution sector
