3i Infrastructure seals Cross London sale and Tampnet buy – Following on from the completion of the sale of its 33.3% stake in Cross London on March 14, 2019, for £333mn, 3i Infrastructure plc (3I) has today finalised the acquisition of Tampnet for €226 million following the receipt of regulatory approvals in Europe and the USA. 3I Infrastructure has invested alongside Danish pension fund ATP, with each party acquiring 50%. Tampnet is the leading offshore telecoms network operator in the North Sea and the Gulf of Mexico.
3I moves on to new projects after realising cross train profits
Cross London was established to acquire and lease trains for use on the Thameslink passenger rail franchise. Earlier in February 2019, Richard Laing, chairman of 3I Infrastructure, commented, “XLT has proved a very good investment for the company, generating significant value for our shareholders. Having supported the project through design, manufacturing and delivery, we believe that now is an appropriate time for the company to realise its stake.”
About 3I infrastructure
3I is a closed-end investment company that invests in long-term infrastructure businesses and assets. Its market focus is on economic infrastructure and greenfield projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.
About Tampnet
Founded by Equinor (formerly known as Statoil) in 2001, Tampnet provides high speed, low latency and resilient data connectivity offshore through a comprehensive network of fibre optic cables, 4G base stations, and microwave links. It operates across four main business areas: fixed installations, mobile rigs and vessels, roaming for offshore workers and international carriers. The majority of its business involves providing fixed fibre links to oil platforms. Tampnet’s fibre optic links provide oil producers with mission-critical reliable communications in an often hostile environment.
Tampnet generates c.85% of its business in the North Sea and c.15% in the Gulf of Mexico, and serves more than 50 customers including oil and gas operators, offshore service providers and telecom operators. Tampnet also has the opportunity to grow into new segments such as offshore wind, commercial vessels and the point-to-point carrier segment.
When the deal was originally announced in July 2018, Richard Laing, chairman of 3I Infrastructure, commented: “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.”
3IN : 3i Infrastructure seals Cross London sale and Tampnet buy