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November 21st, 2014

UTC, NIB & NEL Jointly Acquire 10% stake in Phoenix Park Gas

 

UTC, NIB and NEL Jointly Acquire 10% stake inPhoenix Park Gas Processors Limited

First investment as a consortium by the leading institutional investors in Trinidad & Tobago results in full ownership of Phoenix Park by statutory and related entities of the Republic Trinidad & Tobago.

 Port of Spain, November [19th] 2014 –An investmentconsortium comprisingThe National Insurance Board of Trinidad and Tobago (“NIBTT”), National Enterprises Limited (“NEL”), and The Trinidad and Tobago Unit Trust Corporation (“UTC”) announced today the acquisition of 100% of the equity of Pan West Engineers & Constructors, LLC (“Pan West”)for a total consideration of US$ 168 million.Pan West is a wholly-owned subsidiary of General Electric Capital Corporation (“GE”) and the holder of a 10% equity interest in Phoenix Park Gas Processors Limited (“Phoenix Park”).

Phoenix Park’s core business is natural gas processing and natural gas liquids (“NGLs”) aggregation, fractionation and marketing. It operates Trinidad & Tobago’s only natural gas processing and NGL fractionation plant and is the largest producer and marketer of propane, mixed butane, isobutane and natural gasoline in the Caribbean. Phoenix Park’s cryogenic gas processing plant and associated infrastructure are located on the Point Lisas Industrial Estate on the west coast of Trinidad and is one of the largest of such facilities in the western hemisphere. Prior to this transaction, Phoenix Park, whichwas incorporated in 1989 under the laws of the Republic of Trinidad & Tobago and which commenced production in June 1991, was owned 80% by the National Gas Company of Trinidad & Tobago (“NGC”), 10% by NEL and 10% by Pan West.

“This transaction provides an opportunity to strengthen NIBTT’s Investment portfolio particularly in light of the limited investment opportunities locally.  Acquisition of Phoenix Gas shares is in keeping with our strategy of portfolio diversification which is being pursued to safeguard the National Insurance fund and promote the long term sustainability of the National Insurance System,” said Adrian Bharath, NIBTT Chairman.

“The acquisition of an additional interest in Phoenix Park’sequity is consistent with NEL’s strategy to increase its equity participation in the energy industry and to continue playing an integral role in the development of the Trinidadian capital markets; Phoenix Park has been a strong performing company that can continue to provide solid returns and value for NEL’s shareholders,” said Kenny Lue Chee Lip, NEL Chairman.

“Given its solid operational and financial performancecoupled with its strong level of cash generation level, low debt level and investment rating, Phoenix Park represents an attractive investment opportunity for UTC’s funds with attractive dividend yields and risk-adjusted returns,” said Wendell Mottley, UTC Chairman.

As a result of this transaction, Phoenix Park is now wholly-owned and controlled by statutory and related entities of the Republic of Trinidad and Tobago.

The transaction represents the first joint investment as a consortium by NIB, NEL and UTC which are among the leading institutional investors in Trinidad & Tobago. These institutional investors are predominantly owned by and managed on behalf of the citizens of Trinidad & Tobago.

About the Investment Consortium:

  • NIBTTbegan operations on April 10th, 1972 and provides social insurance coverage to over the 18,000 employers and 519,000 employees who contribute to the national insurance system,offering a wide range of benefits at an affordable rate. The NIBTT has a tripartite board of management: labour, business, and the government and is responsible for the operation and administration of the country’s National Insurance System with the mission is to provide meaningful social security products and services to its customers
  • NELis an investment holding company incorporated on August 27th, 1999 by the Government of the Republic of Trinidad and Tobago; it was created to consolidate the Government of the Republic of Trinidad and Tobago’s shareholdings in selected state enterprises and to facilitate a public offering on the Trinidad Stock Exchange (TTSE:NEL). As an investment holding company, NEL consolidates the GORTT’s shareholdings, facilitates investment in them on the TTSE, and helps to provide strategic leadership for the benefit of its shareholders. NEL’s mission is to provide investors with income and capital growth through a portfolio of investments with minimum risk exposure
  • UTCbegan its operations in 1982 with the mission to create and enhance customers’ wealth by providing superior financial services in a cost-effective manner. It has approximately TT$22 billion in assets under management and is the largest mutual fund provider in Trinidad and Tobago, with 47% market share as of December 2013.UTCmanages funds that invest in debt and equity instruments in Trinidad & Tobago and internationally, on behalf of its approximately575,000 unit holders.

The investment consortium was advised by:Ernst & Young Services Limited who acted as tax advisor;Fitzwilliam, Stone, Furness-Smith & Morgan and Alvarez Arrieta & Diaz-Silveira LLP,who provided local and US legal advisory services, respectively;Mr. Daniel Sankar and Mr. Prem Beharry, who provided technical and industry expertise; and Pan American Finance, LLC, a Miami-based investment bank, who acted as financial advisor for the transaction.

Investment Consortium: Wendell Mottley, Chairman, Unit Trust Corporation, UTC, (front, center) is all smiles as he sits with Kenny Lue Chee Lip, Chairman, National Enterprises Limited, NEL, (left) and Adrian Bharath, Chairman, National Insurance Board, NIB, following the signing of the historic investment deal at the Hyatt Regency, Wrightson Road, Port of Spain, November 20, 2014. They are flanked by members of the consortium’s team that worked on the investment deal. (Standing L-R) Krishnadath Ramlogan, General Manager, NEL, Sekou Mark, Vice President, Investment Research and Portfolio Management (IRPM) UTC, Philip Williams, Manager, Research, IRPM, UTC, Karen Gopaul, Executive Director (Ag.), NIB, Christopher Clarke, Investment Manager, NIB, and Navin Rajkumar, Executive Manager, Investments, NIB. Missing is Karen Gayadeen-Gosine, Assistant Vice President, IRPM, UTC.

Investment Consortium: Wendell Mottley, Chairman, Unit Trust Corporation, UTC, (front, center) poses with Kenny Lue Chee Lip, Chairman, National Enterprises Limited, NEL, (left) and Adrian Bharath, Chairman, National Insurance Board, NIB, following the signing of the historic investment deal at the Hyatt Regency, Wrightson Road, Port of Spain, November 20, 2014. In the background stands (L-R) Krishnadath Ramlogan, General Manager, NEL, Ian Chinapoo, Executive Director, UTC and Karen Gopaul, Executive Director, NIB, (Ag.).