WALKERS ADVISES ON LARGEST EVER PE TRANSACTION IN THE RUSSIAN POWER SECTOR
13 Jun, 2012
Walkers, a leading international financial centre law firm, has acted as part of a team of advisers on the purchase by an international consortium of a 26.43% stake in Moscow-headquartered Enel OGK-5, a leading Russian producer of power and heat.
Walkers advised the consortium, comprising Xenon Capital (Investment Advisor to the Rusenergo Fund, Russia’s largest power fund), Macquarie Renaissance Infrastructure Fund (a joint venture between Macquarie Bank and Renaissance Capital), AGC Equity Partners (a global alternative asset investment firm) and the Russian Direct Investment Fund (a US$10 billion fund established by the Russian government), on the transaction, which is both the largest ever private equity deal in the Russian power sector and also the largest private equity investment in Russia by Middle Eastern investors. Jersey-based Partner Jonathan Heaney headed the team, working with Jersey associates Neil McDonald and Mark Crichton.
Through two separate instructions, two other Walkers’ teams advised on the establishment of the structures through which AGC Equity Partners and Russian Direct Investment Fund invested. Cayman Islands Partner Rolf Lindsay and associate Bicrom Das advised existing client AGC. The structure to facilitate RDIF’s investment was established by Jersey Partner Nigel Weston with associate Alex Carus. In this respect, Walkers were able to offer the Russian sovereign wealth fund a particularly innovative solution to a number of its key requirements, making use of a Jersey Separate Limited Partnership.
Damir Musin, Managing Director of Xenon Capital Partners commented: “Walkers provided clear and practical advice to the consortium: we were pleased to have them as part of the advisory team.”
Jonathan Heaney, Partner, Walkers, said: “This is a fantastic deal to have acted on, and has brought together two major areas of Walkers expertise – the firms’ corporate specialism and the strong background in major Russian and CIS transactions. I am particularly pleased that we were able to work across jurisdictions and to showcase our experts in both Jersey and the Cayman Islands.”