TGE Gas Engineering GmbH

Deal Summary

Catalyst advised the shareholders of TGE Gas Investment SA on the sale of a 60% shareholding to China International Marine Containers (CIMC) in a transaction worth up to £30 million depending on final performance.

Based in Luxembourg, TGE is one of the world's leading contractors for bulk storage of refrigerated gases (LNG, LPG, ethylene, propylene). The company focuses on the design and construction of onshore plants for handling and storing liquefied gases and since 2000 has completed 53 projects across the world. TGE's engineers and project managers include many of the leading specialists in the LNG, LPG and petrochemical fields.

CIMC is the world market leader in the field of ISO containers and develops, manufactures and sells box, reefer, special and tank containers. Based in Shenzhen, CIMC is a Chinese publicly listed company and has total revenues of approximately £4.5 billion.

What difference did we make?

Catalyst was referred to the shareholders of TGE by an investor in a deal on which we had earlier advised. The recommendation was made on account of our proven ability to deliver bespoke deal solutions in more complex situations and our expertise in accessing overseas investors for mid-market businesses. The final deal achieved was a sale of a 60% equity holding to CIMC, a complex deal requiring German and Chinese merger clearances which we also managed.

The most challenging part of the deal was the design of cross-options for the vendor and buyer to provide an innovative "deal-dissolution-with-returns" protection for all parties. These options would be called upon in the event of there being a demonstrable future difference in opinion between the parties over the valuation and timing of the exit.

Through the deal TGE also accessed new working and growth capital facilities as well as access to the valuable Far East commercial network of CIMC.