- During CVC DIF’s ownership, Somerton has delivered stable performance and resilient cash flows.
- The transaction reflects CVC DIF’s strong focus on realising value for its investors, supported by the expertise of its dedicated Divestments team.
CVC DIF, the infrastructure strategy of leading global private markets manager CVC, is pleased to announce that it has agreed to sell its 25% interest in Somerton Pipeline to Channel Infrastructure NZ.
Somerton Pipeline is an essential part of the sole pipeline system delivering jet fuel to Melbourne Airport, Australia’s second-busiest airport. ExxonMobil operates the pipeline on behalf of the Somerton Pipeline Joint Venture.
CVC DIF, via its CIF I fund, acquired a 25% interest in the Somerton Pipeline in 2017. During CVC DIF’s ownership period, Somerton has operated within the aviation fuel supply chain reliably and delivered resilient cash flows. The transaction reflects CVC DIF’s strong focus on realising value for its investors, and being able to match divestments with the right long-term owners of its assets.
Andrew Freeman, Partner and Head of Divestments at CVC DIF, commented: “The Somerton Pipeline exit showcases CVC DIF’s ability to deliver value from smaller investments while securing the right long-term owner. This critical asset supports Melbourne Airport’s jet fuel supply, and we’re proud to have ensured its safe, efficient operation for future growth.”
The Somerton Pipeline exit showcases CVC DIF’s ability to deliver value from smaller investments while securing the right long-term owner.
Andrew Freeman Partner and Head of Divestments at CVC DIF
The sale of Somerton Pipeline continues CVC DIF’s approach of strategic realisations across its portfolio, following recent exits from Portuguese highway concessions Norte Litoral and Algarve, as well as Boluda Maritime Terminals, Mallorca Fire Station and TTI Algeciras earlier this year.
CVC DIF was advised on the transaction by MinterEllison (legal).