APA Group has entered into a Share Sale Agreement with Alinta Power and Alinta Energy Development to acquire 100 per cent of Alinta Energy Pilbara and Alinta Energy (Newman Storage) for an enterprise value of $1.7 billion.
Alinta Energy Pilbara is an energy infrastructure business underpinned by contracted operational assets (gas and solar power generation, gas transmission, battery energy storage systems and electricity transmission), together with an extensive development pipeline of projects (wind, solar, gas reciprocating engines, battery energy storage systems and associated electricity transmission), located in Western Australia’s Pilbara region.
APA intends to raise $675 million through a fully underwritten ‘pro-rata’ institutional placement and will undertake a non-underwritten Security Purchase Plan for eligible security holders to raise $75 million. The proceeds will be used to partly fund the acquisition. The balance of the purchase price will be funded by new debt facilities established in connection with the acquisition of $993 million.
Alinta Energy Pilbara has existing long term Power Purchase Agreements with a number of Australia’s most significant resources companies and a pipeline of projects to bring new renewable energy solutions to market, aligned to APA’s Climate Transition Plan. This includes near-term actionable projects with strong wind and solar resources in highly sought after strategic locations with strong interconnectivity to existing assets.
APA CEO and Managing Director, Adam Watson, said that the acquisition of Alinta Energy Pilbara delivers APA a significant new growth platform in the attractive remote-grid energy sector.
“It’s consistent with our strategy to be the partner of choice in delivering infrastructure solutions for the energy transition and links directly with our focus on customers in the resources sector,” Mr Watson said.
“The business is underpinned by high-quality assets and a stable base of blue-chip customers operating in one of the world’s leading mining geographies.
“The acquisition is expected to deliver positive immediate and long-term benefits to security holders, and complements our existing assets in Western Australia. It allows us to leverage our existing skills in operating large-scale gas, renewables and storage infrastructure, and provides the opportunity to capitalise on the increasing need for reliable, affordable and lower emissions energy as the resources sector continues to decarbonise.”
