ABU DHABI, UAE: Multiply Group, an Abu Dhabi-based investment holding company, has announced that it has acquired a minority stake in Breakwater Energy, a subsidiary of EIG that owns 25% of Repsol E&P, a global upstream oil and gas business.
The deal, worth AED 367 million ($100 million), is part of Multiply Group’s opportunistic investment arm, Multiply+, that seeks attractive dividend-paying investments with mid-to-short term horizon.
Breakwater Energy, which completed the acquisition of 25% of Repsol E&P in March 2023 for $4.8 billion, has access to a diversified portfolio of upstream assets in 15 countries, with significant gas weighting and reserve life. Repsol E&P produces more than 550,000 boe/d and plans to use the proceeds of the transaction to expand its low carbon platforms around the world. Repsol and EIG also intend to list the business in the US from 2026 onward, subject to market conditions.
Samia Bouazza, Group CEO and Managing Director at Multiply Group, said that the stake in Breakwater Energy fits well with its Multiply+ portfolio and that it is confident in the ability of Repsol and EIG to deliver on their ambitious plans. She also said that Multiply Group is well-positioned to explore more high-value acquisition opportunities and that it is interested in Repsol’s plans to invest in low carbon energy projects.
R. Blair Thomas, CEO of EIG, said that energy transition is changing the industry and requires new thinking about capital allocation and asset stewardship. He said that he is honoured to partner with leading investors like Multiply on that journey.
Multiply Group has been deploying capital across its two distinct arms: Multiply and Multiply+. Multiply operates and invests in its core verticals (Mobility, Energy & Utilities, Media & Communications, and Beauty & Wellness), while Multiply+ looks for opportunities across various asset classes. Under a year ago, Multiply Group invested AED 10 billion in TAQA, an integrated utilities company in the EMEA region. TAQA recently acquired SWS Holding for AED 1.7 billion, expanding its presence in the wastewater network and treatment business.
Multiply Group has a strong cash flow position with over AED 1.2 billion, healthy debt ratios, and access to over AED 4 billion in financing capacity. The Group also continues to grow its operating businesses through organic and inorganic growth levers, including digitalisation and AI.