MM Capital Infrastructure Fund I’s Minority Stake Acquisition In AS Conexus Baltic Grid

Herbert Smith Freehills has advised MM Capital Infrastructure Fund I on its proposed acquisition of a 29.06% stake in AS Conexus Baltic Grid, a unified natural gas transmission and storage operator in Latvia, from the Marguerite Fund.

MMCIF, after becoming a shareholder of CBG, intends to utilise Marubeni’s knowledge and expertise from existing investments in order to contribute to the successful operation of CBG. MM Capital Partners can also offer to support CBG in procuring a long-term financing by leveraging its relationship with Japanese financial institutions.

The transaction is subject to conditions in the Energy and National Security Laws of Latvia.

Managed by MM Capital Partners, MMCIF was formed in 2018 by Marubeni Corporation, Mizuho Bank, Ltd. and Asset Management One Co., Ltd. for the purpose of operating and managing funds specialised in equity investments in overseas infrastructure assets.

Marubeni Corporation is a Japanese trading and investment firm, engaged in a broad range of global business activities including infrastructure, energy, metals and mineral resources, chemicals and food.

Marguerite, established in 2010 with offices in Luxembourg and Paris, is an alternative investment fund manager licensed in Luxembourg.

The Herbert Smith Freehills team was led by the firm’s global head of energy Lewis McDonald (Picture) and corporate senior associate Eliza Eaton, both based in London, supported by Latvian local counsel Sorainen.

Marguerite was advised by a team from CMS in London, led by partner Charles Currier, together with Latvian local counsel Cobalt.

Involved fees earner: Charles Currier – CMS Cameron McKenna Nabarro Olswang LLP; Eliza Eaton – Herbert Smith Freehills; Lewis McDonald – Herbert Smith Freehills;

Law Firms: CMS Cameron McKenna Nabarro Olswang LLP; Herbert Smith Freehills;

Clients: Marguerite Adviser S.A.; MM Capital Infrastructure Fund I;

Author: Michael Patrini