Thursday, 27 October 2016
Last updated 12 min ago
Oct 4 2012 | 12:42pm ET
A group of hedge fund managers, including Highbridge Capital Management's own Glenn Dubin, is to buy Highbridge's energy-trading joint-venture with Louis Dreyfus Group.
Dubin leads a group that includes Atticus Capital founder Timothy Barakett, Tudor Investment Corp. founder Paul Tudor Jones and Continental Grain's Paul Fribourg. To avoid a conflict of interest, Dubin will buy most of Dreyfus' stake, while his fellow investors negotiated directly with Highbridge. Dreyfus will retain a minority stake in LDH Energy, which will be renamed Castleton Commodities International.
"As a global commodity merchant, the quality of your relationships, whether at the board or company level, is critical for the number of opportunities you see," LDH CEO William Reed told the Financial Times.
The deal comes as Dreyfus focuses on its core agricultural-trading business, while Dubin, Highbridge's chairman, told the FT that a sale had always been anticipated.
Terms of the sale were not disclosed.
LDH is one of the largest natural gas, crude oil and products traders in the world. It was set up in 2006 by Highbridge and Dreyfus, and made between US$200 million and US$300 million in profit last year. It is also planning a major expansion from its North American base, into Asia and Europe.