SYDNEY, AUSTRALIA: APA Group (ASX:APA), a leading Australian energy infrastructure business, has announced that it has entered into a Share Sale Agreement with Alinta Power Cat Pty Ltd and Alinta Energy Development Pty Ltd to acquire 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (Alinta Energy Pilbara) for an Enterprise Value of A$1.7 billion.
Alinta Energy Pilbara is an energy infrastructure business that operates gas and solar power generation, gas transmission, battery energy storage systems (BESS) and electricity transmission assets in Western Australia’s Pilbara region. It also has an extensive development pipeline of projects, including wind, solar, gas reciprocating engines, BESS and associated electricity transmission.
APA Group will fund the acquisition partly by raising A$675 million through a fully underwritten ‘pro-rata’ institutional placement and A$75 million through a non-underwritten Security Purchase Plan for eligible security holders. The balance of the purchase price will be funded by new debt facilities of A$993 million established in connection with the acquisition.
APA Group said that the acquisition will enhance its position as a leading provider of energy infrastructure solutions in Australia and will create significant value for its security holders. It also said that the acquisition will diversify its portfolio of contracted assets and provide exposure to the growing demand for renewable energy in the Pilbara region.
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