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The Carlyle Group And Vitol Group To Invest In Varo Energy To Create A Major New Energy Midstream Group Across North-West Europe

Global alternative asset manager The Carlyle Group and the Vitol Group of Companies today announced a transaction intended to establish Varo Energy B.V. as a major midstream energy business in north-west Europe.

Under the terms of the proposed transaction, Vitol and Carlyle International Energy Partners (CIEP) will each own 50% of an enlarged Varo Energy Group. AtlasInvest will sell its shareholding in Varo Energy to CIEP while Vitol will reduce its current stake to enable each party to own 50%.

In conjunction with CIEP’s investment into Varo Energy, Varo Energy will acquire from Vitol all shares in PT Holdings GmbH, the holding company for Petrotank Neutrale Tanklager GmbH and all shares in Vitol Germany GmbH.

Furthermore, Varo Energy will also acquire, by means of a separate transaction, all shares currently held by OMV Deutschland GmbH (Vienna SE - OMV:AV) in Bayernoil Raffineriegesellschaft mbH, as well as certain downstream assets owned by OMV Deutschland GmbH.

On completion of these transactions, the Varo Energy business will comprise three core areas; refining wholesale distribution and storage, with a combined refining capacity of 160k bbl/d, sales of 10MM m3 per year and 1.7 MM m3 of storage capacity.

Its assets will include the Cressier refinery in Switzerland, all the Petrotank storage facilities throughout Germany, additional storage facilities in Switzerland, and – after the acquisition from OMV - also a 45% shareholding in the Bayernoil refinery in Bavaria, Germany. The distribution business will continue to serve clients in Hamburg, Bavaria and along the Rhine, as well as throughout Switzerland.

This is the second investment by CIEP, a fund that focuses on oil and gas exploration & production, midstream, refining & marketing and oil field services in Europe, Africa, Latin America and Asia. Each of the transactions described above are subject to regulatory approvals and other customary closing conditions. These transactions are expected to close before or during the first half of 2014. Financial Terms were not disclosed.

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