SYDNEY, AUSTRALIA: Leading Australian energy infrastructure business, APA Group (ASX: APA), has entered into documentation to potentially acquire Basslink Pty Ltd and agreed documentation with Hydro Tasmania and the State of Tasmania in relation to the ongoing operations of Basslink.

Basslink owns and operates the 370km high voltage direct current electricity interconnector between Victoria[j1]  and Tasmania.

The transaction is subject to a number of conditions precedent, including the approval of the deed of company arrangement proposed by APA at the second meeting of creditors of Basslink, which is scheduled to be held on Tuesday 18th October.

Under the proposal APA Group will acquire Basslink for $773 million. These proceeds will be used to repay Basslink creditors, including APA’s existing senior secured debt of $648 million.

APA Group acquired 100% of the senior secured bank debt of Nexus Australia Management Pty Ltd, which is the borrowing entity of Basslink, in March 2022 at a discount to face value and has been participating in a receiver-led process for the sale, restructure or recapitalisation of the business of Basslink.

As part of the transaction the full amount of APA’s debt and interest accrued will be repaid by it being in effect set off against the purchase price.

APA Group is a leading Australian Securities Exchange (ASX) listed energy infrastructure business. It owns and/or manages and operate a diverse, $21 billion portfolio of gas, electricity, solar and wind assets.

APA delivers approximately half of the nation’s gas usage and connect Victoria with South Australia and New South Wales with Queensland through our investments in electricity transmission assets.

It also owns and operates renewable power generation assets in Australia, with wind and solar projects across the country. APA Infrastructure Limited is a wholly owned subsidiary of APA Infrastructure Trust and is the borrowing entity of APA Group.