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Cobaltum advises Putney Capital on Acquisition of V Energy from SOL Group

Cobaltum advises Putney Capital on Acquisition of V Energy from SOL Group

Cobaltum advises Putney Capital on Acquisition of SPDL from SOL Group
Transaction Overview:
  • On December 3, an affiliate of Putney Capital Management, Ltd. (“Putney”) acquired a 50% ownership stake in V Energy Ltd (“V Energy”), formerly known as Sol Petroleum Dominicana Limited held by its joint-venture partner, Sol Investments Ltd., an affiliate of Barbados-based SOL Group (“SOL Group”).  The transaction resulted in Putney increasing its ownership stake in V Energy to 100%
  • V Energy owns and operates over 130 retail fuel stations in the Dominican Republic under the Shell brand, in addition to industrial and commercial fuel stations, fuel distribution and the sale of lubricants
  • Putney Capital is a private equity and asset management firm specializing in investments in growth capital, buyouts, recapitalizations, turnarounds and joint ventures, with a focus on investments in the industrial and energy sectors in the Caribbean, Central America, Colombia and Peru markets
  • SOL Group is the largest independent petroleum marketing company in the Caribbean basin, with operations spanning across 21 countries. SOL Group currently manages a portfolio of 472 service stations, 14 aviation facilities, 24 marinas, and 32 import terminals
Strategic Rationale:
  • Strategic Fit: Putney is a well-established and successful investor in the DR energy sector.  Putney has a broad base of specialized industry knowledge, management talent and local relationships, uniquely positioning it to effectively manage and grow V Energy
  • Attractive Valuation: Putney acquired the remaining 50% stake in V Energy at an attractive valuation, both from an intrinsic and relative value standpoint, positioning itself for above-average returns on this investment
  • Upside Opportunities: Putney and Cobaltum have identified a number of short-to-midterm financial, commercial and strategic initiatives that present large, highly achievable upside opportunities, further enhancing V Energy’s return profile

Cobaltum Role / Results:
  • Cobaltum acted as the exclusive strategic and financial advisor to Putney
  • Cobaltum advised Putney in exploring strategic alternatives related to its investment in V Energy.Cobaltum assisted Putney in developing a strategic/financial assessment of V Energy and devising a tailored negotiation strategy. Cobaltum guided Putney through a unique set of facts and contractual considerations, achieving a successful outcome for our client
  • Putney acquired the remaining 50% ownership stake it did not already own in V Energy at an attractive valuation (terms not disclosed). V Energy is the market leader in Dominican Republic with significant untapped upside potential, positioning Putney to achieve an attractive rate of return on its investment