APA intends to raise A$675m through a fully underwritten institutional placement and raise A$75m through a non-underwritten Security Purchase Plan (SPP) to partly fund the acquisition, and the remaining purchase price from A$993m new debt facilities
Alinta Energy to sell Pilbara assets to APA Group. (Credit: Alinta Energy)
Australia-based energy infrastructure company APA Group has agreed to acquire Alinta Energy’s power assets in the Pilbara region of Australia for a total enterprise value of A$1.72bn ($1.1bn).
The electric utility owns and operates its Pilbara assets through Alinta Energy Pilbara Holdings and Alinta Energy (Newman Storage), collectively known as Alinta Energy Pilbara.
Alinta Energy Pilbara holds contracted operational gas and solar power generation, gas transmission, battery energy storage systems (BESS) and electricity transmission assets.
It also holds a large development pipeline of wind, solar, gas reciprocating engines, BESS and associated electricity transmission projects in the Pilbara region.
The acquisition is expected to be completed in Q4 2023, subject to certain customary closing conditions.
APA intends to raise A$675m through a fully underwritten institutional placement and will undertake a non-underwritten Security Purchase Plan (SPP) to raise A$75m.
It intends to use a part of the proceeds from the placement to fund the acquisition and the remaining purchase price through new debt facilities of A$993m.
Alinta Energy MD and CEO Jeff Dimery said: “We had a long-term vision and plan to decarbonise the Pilbara, which is well underway and underpinned by the strong renewables and emissions reductions targets of our customers and partners in the region.
“We congratulate APA for buying into that vision, and we thank our employees and partners who helped us to deliver Australia’s first grid-forming big battery at Newman, the largest remote solar farm in Western Australia at Chichester, and the work that continues through groundbreaking projects like the current Port Hedland solar, battery and gas hybrid project.”
Alinta’s existing assets involved in the transaction include 200km of high voltage powerlines, 210MW Port Hedland Power Station, 238MW Newman Power Station, 35MW Newman battery, and 60MW Chichester Solar Farm.
The transaction also includes its 11.8% stake in 203TJ/d Goldfields Gas Transmission Pipeline and 80MW additional capacity under construction.
Alinta said the transaction will not impact its retail gas operations and projects in Southwest WA, including its recently announced 100MW Wagerup big battery.
In addition, the transaction will support its renewables and storage projects, including the 1GW Spinifex offshore wind project and the 900MW Oven Mountain Pumped Hydro project, said the company.