LONDON: VH Global Energy Infrastructure plc has agreed to sell its two operating liquid storage terminals at the Port of Brownsville on the Texas Gulf Coast for $134 million, the company announced Tuesday.
The buyer is Victory Hill Midstream CV I, LP, a newly formed continuation vehicle managed by Victory Hill Capital Partners LLP, which also serves as the company’s investment manager. A U.S.-based secondaries investor focused on North American energy assets will serve as the lead investor in the vehicle.
The transaction represents a key step in the company’s shareholder-approved asset realisation strategy, which aims to maximise value and return capital to shareholders in a timely manner, the company said.
“The two liquid storage terminal assets have been a successful investment for the company, generating above target returns for shareholders, whilst delivering reliable cash generation throughout our ownership period,” said Bernard Bulkin, chair of ENRG.
The deal is subject to customary closing conditions and two additional conditions precedent: securing further funding from syndicate investors alongside the lead investor commitment, and renewing the asset’s principal customer contract. Both conditions must be met within 90 days, with a possible 60-day extension.
If the transaction closes, the total value delivered to shareholders since the Dec. 31, 2024 reference net asset value date, including dividends, would be approximately 105% of the asset’s NAV of $149.8 million as of that date. The investment would have generated a 13.4% internal rate of return and a 1.78x multiple on invested capital over ENRG’s ownership period, exceeding the company’s target return of 10% per annum.
The board conducted a comprehensive review of alternatives for the asset, led by exclusive financial adviser Piper Sandler & Co., before concluding that the continuation vehicle transaction offered the best outcome for shareholders in terms of value maximisation, execution certainty and speed of monetisation.
Because the transaction value exceeds the 5% threshold under UKLR 8.2.1R, the deal constitutes a related party transaction. The board said it considers the terms fair and reasonable for shareholders and has been so advised by Deutsche Numis, which is acting as sponsor for the transaction.
Net proceeds will be returned to shareholders through a bonus issue of redeemable B shares under the company’s B share scheme. No shareholder action is required.
The company continues to pursue sales of its remaining assets as part of the realisation strategy and said further updates would be provided as additional transactions are agreed and completed.
Victory Hill Capital Partners LLP, founded in May 2020, is a London-based investment firm focused on energy infrastructure and private equity. The firm has deployed equity capital across 34 assets in seven countries and six technologies since its founding.
