3i Infrastructure, AMP Capital Acquire Esvagt--Update

(Rewrites, adds detail.)

By Simon Zekaria and Robb M. Stewart

LONDON--3i Infrastructure PLC (3IN.LN) Tuesday said it is teaming up with fellow infrastructure investor manger AMP Capital to jointly acquire Denmark's Esvagt, a provider of rescue services for Scandinavia's offshore oil and gas industry, for a combined sum of around 218 million pounds ($337 million)

Both 3i Infrastructure, a unit of investment firm 3i Group PLC, and AMP Capital, a unit of Australian financial services company AMP Ltd. (AMP.AU), are spending about GBP109 million to acquire an equal 50% shareholding in Esvagt from Maersk Group, the companies said.

Headquartered in Esbjerg, Denmark, Esvagt supplies emergency rescue and response vessels, as well as other related services, to the offshore oil and gas industry in and around the North Sea and the Barents Sea. Employing more than 800 people and owning a fleet of 43 vessels, Esvagt has key operations in Denmark and Norway and is growing its presence in the U.K. offshore wind services sector.

3i Infrastructure said Esvagt's leading market positions are expected to continue to deliver an "attractive and stable" long-term financial return.

"This investment fits well with our strategy of investing in mid-market economic infrastructure businesses," said 3i Infrastructure Chairman Peter Sedgwick.

The deal also bolsters AMP Capital's global infrastructure fund by adding an operating model that is positioned to be replicated in other markets, said Boe Pahari, global head of infrastructure equity at the Australian firm.

AMP Capital's global infrastructure platform is currently raising funds from global investors and the company said it has secured commitments for more than $1 billion, with a targeted final close of $2 billion.

Completion of the deal for Esvagt, which needs antitrust clearance from European Union competition authorities, is expected by the end of September, 3i Infrastructure said.

At 1134 GMT, 3i Infrastructure shares rose 0.5% to 167 pence, valuing the company at GBP1.47 billion.

Write to Simon Zekaria at [e-mail] and Robb M. Stewart at [e-mail]