Rubis: exclusive negotiations with I Squared Capital for the sale of its 55% share in Rubis Terminal

(Boursier.com) — Ruby announces today that it has entered into exclusive negotiations with I Squared Capital for the sale of its 55% share in Rubis Terminal.

Rubis Terminal is a major player in the storage of liquid products with 4 million m3 of storage capacity in France, Spain and in the Antwerp and Rotterdam hubs.
Rubis created the Rubis Terminal JV with I Squared (45% stake) in 2020 to implement a strategy of product diversification and geographic expansion, with a view to creating value for the company.

By taking exclusive control (100%) of the JV, I Squared will be able to use its financial capacity to continue to accelerate the growth and diversification of Rubis Terminal alongside the management team in place.

Opportunity

Quoting…

For Rubis, this sale is an opportunity to crystallize the value thus created. It fits perfectly with the Group’s strategy implemented since 2021 aimed at increasing its shareholder return by developing the Energy Distribution branch while directing its investments towards the Production of renewable energy.

The net sale price for the 55% share held by Rubis would amount to 375 million euros paid in the form of a payment of 125 million euros at the closing of the operation, followed by three payments of amount identical over the following three years. The enterprise value of the transaction was set on the basis of 11x the EBITDA of the last 12 months to June 2023.

Exceptional dividend of 0.75 euros per share

The capital gain from the sale, estimated at 75 million euros, would be fully returned to shareholders through an exceptional dividend of 0.75 euros per share which would occur after the closing of the operation. The balance would be allocated to accelerating the energy transition in all of the Group’s operational activities.

This operation remains subject to the information and consultation process of the employee representative institutions concerned in accordance with the law in force, as well as the usual regulatory authorizations including those of the antitrust authorities and foreign investment committees. The closing of the operation is expected by mid-2024.