2014 | Energy
Advised
on the acquisition of
Overview of Transaction:
On October 31, 2014 Putney Capital Management, Ltd. (“Putney”), in partnership with Darby Private Equity (“Darby”), finalized the acquisition of a significant indirect stake in Empresa Generadora de Electricidad Haina, S.A. (“EGE Haina”). Bancolombia provided $100 million in acquisition financing
EGE Haina, jointly owned by the DR government and private investors, is a leader in the DR power generation sector, currently supplying approximately 20% of the country’s electricity demand. EGE Haina owns and operates eight plants with 905 MW of generating capacity, running on fuel oil, coal, and wind power. The company is the largest generator in the Dominican Republic by installed capacity
Putney is an asset management firm, affiliated partner of VICINI, focused on the industrial and energy sectors throughout the Caribbean, Central America and Andean region. Putney is currently managing VICINI’s energy and industrial investment portfolio. Putney was founded in 2007 with offices in Santo Domingo, Dominican Republic and San Juan, Puerto Rico
Darby Private Equity was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc. (NYSE:BEN), a global investment management organization. Darby invested through FINTRA, a Colombian-based infrastructure fund managed by Darby-Colpatria Capital S.A.S., a joint venture between Darby and Grupo Colpatria
Strategic Rationale:
Unique Investment Opportunity: While Putney already owned a significant indirect stake in EGE Haina, the transaction presented a unique opportunity to increase and consolidate its ownership stake of the private sector vehicle that controls this key strategic asset
World-Class Partner: Darby Private Equity is a leading and pioneering investor in emerging markets, with a 20 year investment track record that includes over 60 investments in Latin America and over 15 investments in energy assets worldwide. Darby is an ideal partner to accompany Putney during the next phase of growth and development of EGE Haina
Blue-Chip Asset with Upside: EGE Haina is one of the largest companies in the DR with an excellent management team, strong and predictable cash flow generation, a diversified portfolio of generation assets and an attractive pipeline of growth opportunities
Cobaltum Role / Results
Cobaltum acted as the exclusive strategic and financial advisor to Haina Energy Holdings, and its majority shareholder
Cobaltum was instrumental in the execution of this complex and multi-tiered transaction involving many intellectual, financial and legal challenges. Our advisory included managing difficult and acrimonious purchase negotiations, attracting a global private equity partner (Darby) and securing acquisition financing (Bancolombia). All of this within the context of the dynamic DR energy sector
Cobaltum’s ability to successfully coordinate this comprehensive assignment provided our clients with the ability to consolidate their ownership in this unique asset, attract world-class partners and secure needed financing, positioning them to achieve enhanced long-term investment returns