Travers Smith has advised long-standing client and leading independent infrastructure manager Ancala Partners on the sale of its 50% interest in Dragon LNG Group (Dragon) to VTTI, a global leader in energy storage and developer of energy infrastructure. The transaction is subject to customary conditions and is expected to close in Q3 2024.
Dragon, a liquefied natural gas (LNG) regasification terminal in Milford Haven, Wales, is one of three LNG terminals in the UK. The terminal has a gas send out rate of up to 9bn cubic meters per annum, enough to supply 10% of the UK’s gas needs.
The Travers Smith team was led by our Head of Corporate Spencer Summerfield supported by Senior Associate Fabian McNeilly and Associates Virginia Holdenson and Mapa Madhawa. Specialist competition advice was provided by Head of Competition Nigel Seay and Associate Tom Davies, and specialist tax advice by Partner Simon Skinner and Associate Amy Broderick.
Ancala completed the acquisition of a 50% interest in Dragon in 2019, supported by Travers Smith. Since Ancala’s acquisition, the infrastructure manager has worked closely with the business to invest in the terminal, develop and execute its net zero strategy, and enhance its operations. The other 50% interest is held by Shell who will remain a shareholder following the transaction. The transaction marks Ancala’s sixth exit from its first flagship infrastructure fund which continues to outperform.
Alvarez and Marsal advised on the tax aspects of the transaction.
