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STAR completed the acquisition of TotalFinaElf Connect and TotalFinaElf Pipelines from Total S.A. (formerly TotalFinaElf) in August 2001
Inexus is the largest independent gas transportation business in the UK - sourcing and developing new gas connections and then owning and maintaining them over the long term. STAR actively supported the company in growing both organically and through acquisition. Through STAR's period of ownership, the number of connections installed and extracted by Inexus grew from 135,000 to over 450,000 and the company increased its market share from approximately 35% to 47%.
In addition, in 2005, Inexus successfully diversified
its product offering into electricity, becoming the first UK licensed,
fully accredited and operational independent electricity distribution
network operation. It is expected that this will be an area of significant
growth in the years following STAR’s sale of the business.
Why did Inexus fit STAR's investment strategy?
- It owns high quality long-life assets.
- Strong cash flows are generated over the asset life; providing
good downside risk protection.
- There is a strong management team.
- It offers a number of ways to enhance value and generate upside,
including efficient financing structures, acquiring similar businesses
and expanding the service business (e.g. electricity).
In August 2005, STAR sold Inexus to the Challenger
Infrastructure Fund ("Challenger") for an Enterprise Value of £465
million (€681 million). The sale was the first realisation from
the STAR 1 portfolio.
http://www.connectutilities.co.uk
 
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