The proposed deal gives an enterprise value of A$10.1bn ($7.25bn) for the Australian energy infrastructure company, which is engaged in electricity distribution and other businesses
Australia-based Spark Infrastructure has agreed to be acquired by a consortium of KKR, Ontario Teachers’ Pension Plan Board (OTPP), and Public Sector Pension Investment Board (PSP Investments) for A$5.2bn ($3.71bn).
The parties have entered into a scheme implementation deed (SID) in this connection. The SID will be subject to the approval of the Australian Foreign Investment Review Board (FIRB), court approval, Spark Infrastructure’s shareholders’ approvals, and others.
The proposed deal gives an enterprise value of A$10.1bn ($7.25bn) for the Australian energy infrastructure company, which is engaged in electricity distribution and other businesses.
As per the terms of the proposed deal, Spark Infrastructure’s shareholders could get A$2.95 ($2.12) cash per stapled security.
Spark Infrastructure chair Doug McTaggart said: “The Spark Infrastructure Board unanimously recommends Securityholders vote in favour of the Schemes in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Schemes are in the best interests of Spark Infrastructure securityholders.
“The Board and management have engaged constructively with the Consortium over several months to secure additional value beyond the initial approach.”
Last month, KKR and OTPP made two unsuccessful takeover bids to Spark Infrastructure, of A$2.7 ($1.94) per stapled security and A$2.8 ($2) per stapled security. Both the offers were rejected by the Australian firm as they were considered to be undervaluing its business.
Earlier this month, Canada-based PSP Investments joined the bidding consortium of KKR and OTPP.
The consortium said: “We are excited to invest in Spark Infrastructure’s leading portfolio of electricity networks and help to advance its mission to provide essential energy infrastructure to the millions of customers across Australia that rely on Spark Infrastructure’s assets.
“The Consortium takes its role as a steward of critical infrastructure seriously and we look forward to working with our partners and stakeholders to support Australia’s energy transition and decarbonisation efforts.”
Spark Infrastructure owns stakes in Australian electricity distribution networks SA Power Networks and Victoria Power Networks. It also has a 15% stake in electricity transmission network Transgrid apart from fully owing the 100MW Bomen Solar Farm in New South Wales.
Last month, the company’s subsidiary Spark Renewables announced plans to develop the 2.5GW Dinawan Energy Hub in Australia.