Liquefied Natural Gas Carrier Vessels: CVC DIF Sells Interest in France LNG Shipping

2 minute read | July.08.2024

Français: Orrick a conseillé CVC DIF dans le cadre de la cession d'une participation dans France LNG Shipping à Ocean Yield AS, une société de portefeuille de KKR

CVC DIF has agreed to sell its 29% economic interest in France LNG Shipping (FLS), which operates state-of-the-art liquefied natural gascarrier vessels under long-term charters to tier-one European energy companies.

Orrick advised CVC DIF.

The strategic partnership and investment provided by CVC DIF led to substantial expansion in FLS’ fleet of liquefied natural gas ships.

CVC DIF’s stake in FLS, held through its CIF I and CIF II funds, will be acquired by Ocean Yield AS, a ship-owning company with investments in vessels on long-term charters. Ocean Yield AS is wholly owned by KKR Global Infrastructure Investors IV, a fund managed by KKR.

Closing of the transaction is subject to conditions and is expected to take place in the second half of 2024.

THE COMPANIES

CVC DIF (formerly DIF Capital Partners) is a leading global mid-market infrastructure equity fund manager.

Founded in 2005 and headquartered in Amsterdam, the Netherlands, CVC DIF has about €18 billion of infrastructure assets under management in energy transition, transport, utilities and digitalisation.

With over 240 people in 12 offices, CVC DIF offers a unique market approach, combining a global presence with the benefits of strong local networks and sector-focused investment capabilities.

THE IMPACT

Willem Jansonius, Partner and Head of CIF Investments at CVC DIF, said: “This transaction is a perfect example of CVC DIF’s value-add strategy as FLS is a bigger and better business now than it was in 2019.”

“A key CVC DIF objective is to support growing infrastructure businesses on the back of strong positive sectorial trends and realise attractive returns for our investors. We are proud of the development of the FLS platform and pleased to see a new partner coming in to support its future growth.”

THE TEAM

Orrick’s Patrick Tardivy, Marine Jamain and Marc Diab Maalouf advised CVC DIF on M&A aspects of the deal. Patrick Hubert and Quitterie De La Poype advised on antitrust & competition law, Laurent Olléon on tax law and Adam Smith on English law.

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Related Lawyers

Patrick Tardivy Partner, Mergers & Acquisitions, Private Equity

Paris

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Practice:

Energy & Infrastructure Sector
Mergers & Acquisitions
Private Equity
Infrastructure
Energy
Real Estate
Capital Markets

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Patrick Tardivy Partner

Paris

Patrick advises French and international companies and investors on all aspects of corporate law in the context of acquisitions, disposals, mergers, reorganizations, including business carveouts and strategic alliances.

Patrick is particularly active in the energy and infrastructure fields as well as the tech sectors, working alongside investment funds, French and foreign groups, on both domestic and cross border transactions. Patrick also has significant experience in M&A projects with a focus in the real estate sector where he acts as lead counsel on high-profile transactions.

Recognized by the major international ranking guides, Patrick is valued by his clients for his "business sense is exceptionally useful; he knows our business model and what we are capable of achieving. There is a mutual sense of trust" (Chambers Global 2024). “Patrick has an impressive work force. It strives to always be innovative at the service of its customers in order to make them benefit from the latest market trends (W&I insurance for example)”. (Legal 500 EMEA 2023).

Prior to joining Orrick in 2016, Patrick was a partner in a Magic Circle law firm.

Marine Jamain Partner, Infrastructure, Private Equity

Paris

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D:+33 1 5353 8101
E: [email protected]

Practice:

Infrastructure
Private Equity
Energy
Mergers & Acquisitions

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Marine Jamain Partner

Paris

Marine Jamain advises infrastructure funds, pension funds and other long-term investors in their acquisition, disposal or restructuring transactions in the energy and infrastructure sectors in Europe.

Marine also regularly advises clients in the fast-growing EnergyTech and InfraTech sectors.

Legal 500 EMEA 2023 has ranked Marine in the "Rising Star" category, she is recognized as "building a prominent reputation for transactions within the energy and infrastructure fields".

Patrick Hubert Partner, Antitrust & Competition, Strategic Advisory & Government Enforcement (SAGE)

Paris

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D:+33 1 5353 7500
E: [email protected]

Practice:

Antitrust & Competition
Strategic Advisory & Government Enforcement (SAGE)

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Patrick Hubert Partner

Paris

This breadth of experience has allowed him to become a leading authority in the field of antitrust, but his background helps him borrow ideas from anywhere – finding imaginative solutions for the legal and business challenges his clients face.

Patrick has long been a trailblazer in his field. For example, years before private compliance programs became commonplace, Patrick persuaded his clients to dedicate resources to compliance policies, thus being one of the first to encourage proactive rather than strictly reactive actions. In France, he was one of the first to launch antitrust recovery claims and to work on a private standalone claim, without any precedent from the regulator. Acting on the plaintiff side, he obtained what was at that time the highest fine ever imposed on a dominant company (350 M€).

He is currently handling private claims totaling more than 5 billion euro, advising global tech companies and other multinationals in French and EU competition matters, including merger control filings, cartel and abuse of dominance investigations, state aid and compliance work, as well as private damages actions before the French courts. In addition, he serves as vice chairman of the competition commission of the International Chamber of Commerce and chairs its merger control working party.

Laurent Olléon Partner, Tax, Tax Advocacy

Paris

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D:+33 1 5353 7560
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Practice:

Finance Sector
Tax
Tax Advocacy

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Laurent Olléon Partner

Paris

Laurent intervenes alongside his clients with legal and financial issues, both in terms of advice and litigation situations perspective.

Laurent deals with numerous issues in various fields: the tax consolidation system and, more generally, intra-group relations, the handling of bilateral tax treaties, the taxation of financial transactions, property taxation and local taxation, etc.

His recognized experience in the avoidance of abuse of rights enables corporate tax directors, financial investors and individuals to better secure their investment choices and structuring their transactions. In addition, his intimate knowledge of tax litigation is a major asset for clients.

Laurent has advised many ministries and public institutions on legislative and regulatory developments and their implementation, which gives him an extensive practical vision of both public and private law. His past experience has allowed him to manage and draft legislative bills, which makes him an authority on administrative and parliamentary machinery.

Before joining Orrick, Laurent was a judge of the Conseil d’État and assessor at the Court’s ninth Chamber of the litigation section of the Conseil d’État, worked as deputy Chief of staff of Marylise Lebranchu, the French Minister for the Civil Service, State Reform and Decentralisation and Chief of staff of Anne-Marie Escoffier, Deputy Minister of Decentralisation.