Abu Dhabi’s Lunate Acquires Snam's Stake in ADNOC Gas Pipelines

Italian gas grid operator Snam will sell its minority stake in ADNOC Gas Pipelines to Lunate, an Abu Dhabi-based investment fund.
The deal aligns with Snam's strategy to focus on European infrastructure and reduce its holdings in assets outside major European energy corridors, CEO Stefano Venier said in a statement.
This sale is consistent with the company's recently presented strategic plan, which prioritizes developing a pan-European multi-molecule infrastructure, he added.
Snam had grouped its stake in ADNOC Gas Pipelines, along with its minority shareholding in the British Interconnector, as assets potentially for divestment.
ADNOC Gas Pipelines, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), holds lease rights to 38 pipelines spanning 982 kilometers (610 miles) across the United Arab Emirates.
"We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate's mandate to offer investors access to high-quality assets," said Murtaza Hussain, managing partner at Lunate.
Lunate acquired a 40% stake last year from private equity firms BlackRock and KKR in the entity that leases ADNOC's oil pipelines.
Snam acquired its nearly 6% indirect stake in ADNOC Gas Pipelines in 2020 through Galaxy Pipeline Assets HoldCo Limited, alongside other consortium partners, including GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board, and NH Investment & Securities.
The financial terms of the transaction were not disclosed. Mediobanca, an Italian investment bank, said in a client note that its model values Snam's stake at 200 million euros, compared to a book value of 135 million euros.
A source familiar with the deal said it would result in a capital gain for Snam compared with the book value.
Meanwhile, Rothschild and Bank of America served as financial advisers for Lunate and Snam, respectively.