F2i Sgr, Italy’s largest independent infrastructure fund manager, recently agreed to acquire Ital Gas Storage (IGS) S.p.A., a natural gas storage facility operator owned by Morgan Stanley Infrastructure Partners. Headquartered in Milan, IGS manages a technologically advanced natural gas storage facility in Cornegliano Laudense that has a capacity of 1.6 billion cubic meters.

Brattle was engaged to assist in regulatory due diligence for the sale. A Brattle team, led by Principal Dr. Francesco Lo Passo, provided support in advance of the sale, including  detailing the regulatory framework applicable to the company’s storage field and calculating the weighted average cost of capital. The Brattle team also reviewed the calculation of regulated revenues for Ital Gas Storage included in the financial model and assessed its compliance with applicable tariff regulation.

The agreement, reached in August 2021, provides for an initial sale of 51% of IGS by current owners Morgan Stanley Infrastructure Partners – through Sandstone Holding BV, a subsidiary of the fund North Haven Infrastructure Partners II – with 92.5% control of the company, and Whysol Investments, which controls 7.5% of the company.