An investment group led by Advent International Corp. is buying a minority interest in Oleoducto Central SA, an oil transportation system in Colombia.
The group is buying a 22 percent stake in the oil pipeline for an undisclosed amount. The stake is being sold by Talisman Energy Inc., Total Colombia Pipeline and Compañía Española de Petr-leos SAU.
Compañía Española is a wholly owned subsidiary of Ecopetrol SA, Colombia’s largest oil and gas company. Ecopetrol will retain the majority stake in the pipeline.
Colombia’s two largest pension funds, Sociedad Administradora de Fondos de Pensiones y Cesantias Porvennir SA and Administradora de Fondos de Pensiones y Cesantia Proteccfion SA, are joining Advent in the investment.
The stake is private equity firm Advent’s third investment in Colombia since it opened an office in Bogota in 2011. In November, 2011, the company bought a majority interest in Biotoscana, a specialty pharmaceutical company, and in June 2013, Advent bought a 50 percent stake in Alianza Fiduciaria, an asset management company. The Boston firm has about $31.6 billion in assets under management.
Advent tapped J.P. Morgan Securities LLC, Banco Itau BBA SA, Citigroup Global Markets Inc. and Natixis, New York Branch for financial advice on the deal. Banco Itau BBA, Citigroup and Nataxis also provided committed financing for the deal. G-mez-Pinz-n Zuleta Abogados SA and Weil Gotshal & Manges LLP acted as legal counsel, while Ernst & Young Ltda. And KMPG LLP provided tax advice.
Talisman was jointly advised by BMO Nesbitt Burns Inc. and Credit Suisse Securities. Total and Compañía Española were advised by TD Securities.
Other recent energy deals include Caelus Energy LLC’s acquisition of Pioneer Natural Resources Alaska Inc. and Idemitsu Kosan Co. Ltd.’s (TYO: 5019) agreement, in partnership with AltaGas Ltd., to buy a stake in Petrogas Energy Corp.