Blake Dawson Waldron has advised Alinta Limited (Alinta) on the AUD$1.69 billion acquisition of a diversified portfolio of gas infrastructure and power generation assets from Duke Energy Corporation.
In an announcement made yesterday, the assets Alinta has agreed to acquire in Australia include three strategically located gas pipelines and three gas fired power stations, and in New Zealand, one gas fired power station.
Duke Energy conducted a trade sale process (with an IPO alternative) for its Australian and New Zealand assets, with Alinta the successful bidder.
Alinta proposes to fund the acquisition by an underwritten share placement and a rights issue, together with an increase in debt facilities and utilisation of internal cash resources.
Following completion of the acquisition, a restructuring of Alinta is proposed which would convert it from an investment in a single company structure to an investment in a stapled security, comprising a share in Alinta and a unit in the Alinta Infrastructure Trust (which will hold the Duke assets).
In order to lodge a bid for the assets, much of the legal work on the Alinta rights issue prospectus – and the development of the restructuring proposal – had to be completed in parallel with the bid, and ahead of Alinta knowing whether its bid would be successful or not.
Blake Dawson Waldron lead partner Marie McDonald said, “We were delighted to work with Alinta again on such a significant transaction. The deal followed our work for Alinta last year in the highly complex acquisition of United Energy and Multinet Gas by Alinta and AMP Henderson. Again, an expert knowledge of the energy industry and an ability to execute a complex transaction were essential to a successful legal outcome.”
The Blake Dawson Waldron team worked closely with Alinta’s General Counsel, Murray King and, General Manager – Business Development, Chris Indermaur. The Blake Dawson Waldron team comprised over 50 lawyers from Perth, Melbourne, Sydney and Brisbane, reflecting the diverse geographical location of the assets. Those involved included:
Partners: Marie McDonald (M&A), Cam Johnston and Joanne Evans (Finance), Roger Davies (Capital Raising), Paul Newman and Grant Rowlands (Property and Projects) and Barbara Phair (tax); and
Special Counsel: Joy Hooker (Due Diligence and Energy Law).
The acquisition is due to close in late April, 2004.