The Apollo Global Management investment giant is about to participate in Motor Fuel Group (MFG), one of the largest empires in the British oil fourse, in agreement, which valued it by around 7 billion pounds Sterling.
Sky News learned that Apollo could announce Thursday that he agreed to buy a large minority part in MFG of Clayton Dubilier & Rice (CD & R), its current majority owner.
The transaction will take place after several months of talks involving CD&R and a range of potential investors in a company that quickly widens its presence in the arena of the invoicing of electric vehicles.
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Banking sources have said that there had been a “large appetite” to invest in the next phase of MFG, CD&R, having built the company of an medium -sized industry in more than a decade.
Lazard and the Royal Bank of Canada advised themselves on the agreement.
A participation of around 25 to 30% in the MFG should change hands during the process, with the investment of Apollo which was largely in this range.
MFG is the largest independent forecourt operator in the United Kingdom, after leaving 360 sites at the time of CD & R acquisition of the company.
It is negotiated under a number of brands, including Esso and Shell.
CD&R, which also has the supermarket chain MorrisonsUnited MFG’s Etrol Forecourt Business with that of the grocer in a transaction of 2.5 billion pounds sterling, which finished almost 18 months ago.
The MFG now includes around 1,200 sites across Great Britain, with benefits before interest, taxes, depreciation and amortization (EBITDA) of around 700 million pounds sterling provided during this exercise.
It is now focused on its role in the energy transition, with hundreds of charging points for electric vehicles installed on its network and the growth of its supply of high margin food services.
MFG has described the plans to invest 400 million pounds Sterling in charge EV, and is now the second largest ultra -fast player in the United Kingdom – which offers 100 miles of range in ten minutes – with almost 1,000 chargers.
It aims to spend this figure to 3,000 by 2030.
CD&R, which refused to comment on Wednesday afternoon, will retain majority participation in MFG after any sale of stakes, while Morrisons also has an interest of 20% for the company.
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Bankers expect the minority agreement with Apollo to be followed a few years later with a first public offer on the London stock market.
CD&R invested in MFG in 2015, which makes its long-term investment according to the standards of most periods of investment capital.
The sale of a large minority participation in a corporate assessment of 7 billion pounds Sterling will crystallize a positive return for the buyout company based in the United States.
CD & R and its investors have already been paid hundreds of millions of pounds in dividends from MFG, after seeing its profits increase 14 since the original purchase.
Rival of Morrisons, ASDAhas undertaken a similar transaction with its petrol forevents, with a group for example acquiring the forecourt network of the leeds -based grocer.
For example, the group, which with ASDA is controlled by the TDR Capital Investment Capital Company, is now being prepared for registration in the United States.
Apollo refused to comment.