Alinta Energy will be selling its Pilbara portfolio in Western Australia, which includes the Port Hedland and Newman power stations, to the gas pipeline owner. — Reuters
SYDNEY: Australia’s APA Group says it will acquire Alinta Energy’s power assets in the Pilbara region in a deal valued at A$1.72bil (US$1.1bil), as the energy infrastructure firm aims to reduce its exposure to fossil fuels.
Alinta Energy, the local energy supplier owned by Hong Kong-based Chow Tai Fook Enterprises, will be selling its Pilbara portfolio in Western Australia, which includes the Port Hedland and Newman power stations, to the gas pipeline owner.
Alinta’s Pilbara assets include the 210 megawatt (MW) Port Hedland power station, the 238MW Newman power station, and the Chichester solar farm, along with 200km of high-voltage power transmission lines.
APA Group also plans to raise A$675mil through a fully underwritten pro-rata institutional placement to partly fund the acquisition, coupled with an A$75mil share purchase plan.
The balance of the purchase price will be funded by new debt facilities established in connection with the acquisition.
APA shares were on a trading halt.
“For APA, this will help to expand its services in the Pilbara region, aiding its long-term growth,” said Josh Gilbert, a market analyst at eToro AUS Capital.
“The acquisition is expected to deliver positive immediate and long-term benefits to security holders and complement our existing assets in Western Australia,” APA chief executive officer (CEO) and managing director (MD) Adam Watson said.
APA is looking to expand its hold in Pilbara, while shoring up more electricity generation and assets for its long-term future.
“We had a long-term vision and plan to decarbonise Pilbara, which is well underway and underpinned by the strong renewables and emissions reduction targets of our customers and partners in the region,” Alinta Energy CEO and MD Jeff Dimery said in a separate announcement.
The deal means APA now looks after some of the biggest energy-generation assets in Pilbara, a key area for mining critical commodities such as lithium, added Gilbert. — Reuters
