Australian power generation project developer Pacific Energy announced that it has signed a scheme implementation deed (SID) with QGIF Swan Bidco, a subsidiary of funds managed or advised by QIC Private Capital (QIC).

Pursuant to the SID, QIC would purchase Pacific Energy for a total consideration of $0.975 (£0.78) per share.

Pacific Energy board is expected to declare and pay a fully franked final dividend of $0.015 (£0.012) per share, which forms part of the total consideration, subject to finalisation of its financial year 2019 results.

QIC global infrastructure head Ross Israel said: “As a long-term investor and experienced partner to infrastructure businesses, we are attracted to the quality of the Pacific Energy business and its position in the decentralised electricity generation sub-sector.

“Pacific Energy diversifies the wider QIC Global Infrastructure Fund portfolio and has a risk-return profile consistent with our clients’ requirements. QIC looks forward to securing shareholder approval and, in time, to working with the Pacific Energy management team to support and grow its business ensuring critical energy resources are managed and provided to its customers.”

Pacific Energy said that due to the absence of a better proposal and conclusion from an independent expert, the board of Pacific Energy has unanimously recommended its shareholders vote in favour of the Scheme.

The deal is supported by Kenneth Hall, who owns 48.7% stake in Pacific Energy

Pacific Energy executive director and Kalgoorlie Power Systems founder Kenneth Hall, who currently controls 48.7% of Pacific Energy shares, has confirmed his intention to vote in favour of the scheme.

Headquartered in Perth, Western Australia, Pacific Energy is engaged in the development, ownership and maintenance of mine site and renewable energy power stations.

Pacific Energy chairman Cliff Lawrenson said: “The Board of Pacific Energy considers the proposal from QIC represents an opportunity for shareholders to realise compelling and certain value for Pacific Energy shares.

“The proposal delivers a significant premium for shareholders and recognises the position Pacific Energy has built as the leading Build-Own-Operate power supplier to the mining industry and remote townships in Western Australia as well as the emerging opportunities from our growing east coast presence through Pacific Energy Victorian Hydro and NovaPower.”