Nov 2014 Financial News

Consortium invests in Phoenix Park Gas

Nov 21, 2014

An investment consortium, comprising the National Insurance Board (NIBTT), National Enterprises Ltd (NEL), and the Unit Trust Corporation (UTC), has acquired a ten per cent stake in Phoenix Park Gas Processors Ltd for US$168 million.

It was done through the 100 per cent acquisition of Pan West Engineers & Constructors.

Pan West is a wholly-owned subsidiary of General Electric Capital Corporation (GE) and was the holder of the ten per cent equity interest in Phoenix Park.

Phoenix Park’s core business is natural gas processing and natural gas liquids aggregation, fractionation and marketing. It operates Trinidad and Tobago’s only natural gas processing and NGL fractionation plant and is the largest producer and marketer of propane, mixed butane, isobutane and natural gasoline in the Caribbean.

NIBTT chairman Adrian Bharath said yesterday: “This transaction provides an opportunity to strengthen NIBTT’s investment portfolio particularly in light of the limited investment opportunities locally. Acquisition of Phoenix Gas shares is in keeping with our strategy of portfolio diversification which is being pursued to safeguard the National Insurance fund and promote the long-term sustainability of the National Insurance System.”
The joint acquisition of 100 per cent of the equity of Pan West is the largest investment in the local energy sector for the NIBTT, representing 1.5 per cent of its investment fund, a statement said yesterday.
“The acquisition of an additional interest in Phoenix Park’s equity is consistent with NEL’s strategy to increase its equity participation in the energy industry and to continue playing an integral role in the development of the Trinidadian capital markets; Phoenix Park has been a strong performing company that can continue to provide solid returns and value for NEL’s shareholders,” said Kenny Lue Chee Lip, NEL chairman.

In the statement, UTC chairman Wendell Mottley said: “Given its solid operational and financial performance coupled with its strong level of cash generation level, low debt level and investment rating, Phoenix Park represents an attractive investment opportunity for UTC’s funds with attractive dividend yields and risk-adjusted returns.”
As a result of this transaction, Phoenix Park is now wholly-owned and controlled by statutory and related entities of the Republic of Trinidad and Tobago.

Source:
Trinidad Express
Friday November 21, 2014

http://www.trinidadexpress.com/business/Consortium-invests-in-Phoenix-Park-Gas-283425611.html