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Cobaltum Advises on Sale of V Energy to TOTAL

Cobaltum Advises on Sale of V Energy to TOTAL

Cobaltum Advises on Sale of V Energy to TOTAL
Transaction Overview:
  • On January 27, 2016, an affiliate of Total S.A. (“TOTAL”) announced the acquisition of a 70% stake in V Energy S.A. (“V Energy”) from Putney Capital Management, Ltd. (“Putney”)
  • V Energy is the leading fuel retailer in the Dominican Republic with a well-established network of over 130 service stations and leading market positions in commercial fuel distribution and lubricants
  • Putney is an asset management and private equity investment firm focused on the industrial and energy sectors throughout the Caribbean, and North of Latin America Region (NOLA). Putney is an affiliated partner of VICINI and currently manages VICINI’s energy and industrial investment portfolio. Putney was founded in 2007 with offices in Santo Domingo, Dominican Republic and San Juan, Puerto Rico
  • Total S.A. (ENXTPA:FP / Market Cap: ~$102 billion) is the world’s fourth-largest oil and gas company and second-largest solar energy operator in the world. With operations in more than 130 countries, TOTAL has more than 100,000 employees who are fully committed to better energy
Strategic Rationale:
  • Exceptional Return on Capital / Significant Upside: Putney acquired a 50% stake in Shell Dominicana in 2011, subsequently increasing its ownership stake to 100% in 2013, on attractive terms. The current sale of a 70% stake to TOTAL results in an exceptional return on Putney’s capital, while maintaining significant additional upside with an influential 30% retained equity stake
  • World Class Strategic Partner: TOTAL is a global, integrated energy producer and provider, with world class capabilities. The combination of TOTAL’s operational excellence and Putney’s market knowledge will unlock significant value for all stakeholders
  • Caribbean Regional, Downstream Expertise: TOTAL, through its affiliate Total Marketing & Services, is present in over 30 countries in the Americas and, through this acquisition, significantly strengthens its position in the Caribbean, where it now stands as one of the regional leaders. The joint-venture will be named Total Dominicana and managed as part of Total’s network of 600 service stations throughout nine countries in the Caribbean

Cobaltum Role / Results:
  • Cobaltum acted as the exclusive strategic and financial advisor to Putney
  • Cobaltum advised Putney in the negotiation, structuring and execution of the sale of a 70% stake in V Energy to TOTAL, as well in the structuring and negotiation of a new shareholders agreement, including influential minority rights and strong liquidity rights
  • Cobaltum obtained a high valuation, strong liquidity and influential governance terms for Putney, generating exceptional returns for Putney’s LPs while retaining significant future upside
  • Cobaltum was instrumental in achieving a successful closing in the face of significant business, structural and legal challenges, as well as adverse market conditions. This was achieved by a dedicated, hands-on transaction management approach, including managing an exhaustive buyer due diligence process, leading highly complex negotiations and coordinating large teams of internal and external representatives for both sides