Abu Dhabi-based Multiply Group invests $100m in EIG’s Breakwater Energy

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Multiply Group has acquired a minority interest in Breakwater Energy for Dhs367m ($100m).

This investment comes under Multiply+, the group’s sector-agnostic arm.

Through this acquisition, the group becomes part owner of a profitable and cash-generative, diversified global upstream portfolio with significant gas weighting and reserve life.

EIG, a leading institutional investor in the global energy and infrastructure sectors, through its wholly owned subsidiary Breakwater Energy, acquired a 25 per cent 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 for total consideration of approximately $4.8bn, including debt, with Repsol retaining the remaining 75 per cent. 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 US from 2026 onward, subject to favourable market conditions.

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 utilise this investment to fuel low-carbon energy projects make this transaction particularly interesting for us.”

Multiply Group is acquiring a minority interest in Breakwater Energy for AED 367 million ($100 million). This investment comes under Multiply+, the Group’s sector-agnostic arm that is more opportunistic in nature. pic.twitter.com/Y0SAonu15J

— Multiply Group (@MultiplyGroupAE) July 12, 2023

R Blair Thomas, CEO of EIG, stated, “Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship.”

How Multiply and Multiply+ function

The group has been deploying capital across its two distinct arms: Multiply currently operates and invests in its core verticals (mobility, energy and utilities, media and communications, and beauty and wellness), while Multiply+ looks to target double-digit returns across several asset classes.

A year ago, the group invested Dhs10bn in Abu Dhabi National Energy Company (TAQA).

In June, TAQA announced its acquisition of SWS Holding for Dhs1.7bn, expanding the company into the wastewater network and treatment business and boosting its position as Abu Dhabi’s fully integrated utility.