3i Infrastructure and Denmark’s largest pension ATP are buying an offshore fibre optics company from Swedish investment firm EQT.
3i Infrastructure said it will invest around €220m for the acquisition of a stake in Tampnet.
The listed investment firm is investing in a consortium with the DKK768bn pension fund ATP, with each party acquiring up to 50% of Tampnet. The Tampnet management team will also invest to acquire a minority shareholding.
The asset is being acquired from the EQT Infrastructure I and EQT Infrastructure II funds.
The EQT Infrastructure funds acquired Tampnet in November 2012 for around NOK1.5bn (€157.5m).
During EQT Infrastructure´s ownership, Tampnet entered its second offshore region in the Gulf of Mexico and expanded its existing network in the North Sea into several new offshore areas.
Several new services were launched, and three strategic add-ons acquisitions were completed and integrated.
Richard Laing, the chairman of 3i Infrastructure, said: “Tampnet is the company’s first investment in fibre telecoms infrastructure and provides further geographical diversity through its operations in the Gulf of Mexico.
“The investment offers a good yield profile as well as strong near-term growth prospects. It is an attractive addition to the portfolio.”
3i Infrastructure’s investment adviser, 3i Investments, will manage the investment on behalf of the consortium.
The deal, which is expected to close in 2019, is subject to regulatory approvals in Europe and the US.