The Government of Singapore Investment Corporation (GIC) has bought an 11 per cent stake in United States-based energy infrastructure firm AEI for US$400 million (S$549.2 million).
The investment followed a recent foray into the lucrative sector by another Singapore investment company, Temasek Holdings, and came as oil traded at unprecedented prices.
GIC said yesterday it met AEI late last year when the American firm was seeking to raise capital.
A spokesman said GIC ’sees it as an opportunity to make a substantial investment in AEI until the American firm achieves a stock exchange listing’.
He added that the investment would help GIC gain exposure to the growing energy infrastructure markets of the developing world, the focus of AEI’s business.
GIC Special Investments, GIC’s private equity arm, purchased the shares from AEI and some of its shareholders.
Mr George Kay, vice-president of GIC Special Investments’ London-based global infrastructure group, has been appointed to AEI’s board.
Privately-held AEI owns energy infrastructure businesses in several emerging markets, including China, Mexico and Argentina. Its revenues last year exceeded US$3.2 billion.
Temasek recently set up a unit to invest in energy exploration and development.
