APA made a $1.7 billion offer to acquire a number of Pilbara region assets from utility Alinta Energy.
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APA chief executive officer and managing director Adam Watson said the company will undertake a fully underwritten placement to raise $675 million and a non-underwritten Security Purchase Plan (SPP) to raise a further $75 million to partly fund the acquisition.
The remaining capital required for the purchase will be funded by new debt facilities established in connection with the acquisition of $993 million.
Watson said the acquisition opens the door to support the vast and rapidly growing Pilbara mining region, one of the world’s richest.
He said the inclusion of the Alinta assets will provide APA with a significant growth platform to develop and operate remote-grid energy solutions for Australia’s resources industry.
“The acquisition of Alinta Energy Pilbara delivers APA a significant new growth platform in the attractive remote- grid energy sector. It’s consistent with our strategy to be the partner of choice in delivering infrastructure solutions for the energy transition and links directly with our focus on customers in the resources sector,†APA CEO and Managing Director Adam Watson said.
“The business is underpinned by high-quality assets and a stable base of blue-chip customers operating in one of the world’s leading mining geographies.â€
“The acquisition is expected to deliver positive immediate and long-term benefits to security holders and complements our existing assets in Western Australia.â€
Watson said the Alinta assets will also allow APA to take advantage of its proven skills in operating large-scale gas, renewables and storage infrastructure, while offering an opportunity to benefit from on an increasing requirement for reliable, affordable and lower emissions energy as the resources sector continues to decarbonise.
He noted that Alinta Energy Pilbara has existing long term power purchase agreements (PPAs) with a number of Australia’s most significant resources companies and an attractive pipeline of projects to bring new renewable energy solutions to market. ■