European Diversified Infrastructure Fund II (EDIF II), First State Investments’ €2.1bn European infrastructure fund, is buying a Swedish gas transmission system operator for SEK1.02bn (€96m).
EDIF II has agreed to acquire Swedega from the Spanish energy company Enagás and the Belgian firm Fluxys.
Swedegas owns and operates the sole gas transmission network in Sweden. Through a 600km pipeline network, it supplies 33 municipalities, several combined heat and power plants and industrial customers with gas.
Marcus Ayre, a partner in charge of infrastructure investments at First State, said: “We have significant experience in the European energy transmission and distribution market and it was natural for us to look for further investments in the Swedish gas network sector.
“The energy market is one which meets our investment criteria as we seek to create long-term, sustainable value for our investors.”
EDIF II pursues an investment strategy of constructing a core/core plus infrastructure portfolio of assets primarily targeting energy, utility and transportation investments across Europe.
The transaction is the fund’s second acquisition in the Swedish gas network sector, having acquired the country’s largest gas distribution system operator in April this year.
“We are committed to working closely with the management team at Swedegas to meet its sustainability goals, Ayre said.
“The availability of well-developed gas networks in Europe and the complementary function of renewable gases and natural gas vis-à-vis other energy forms, make gas and gas infrastructure well positioned to help in the transition to a greener energy environment.”
The closing of the transaction is subject to approval from the Swedish Competition Authority.