Gas infrastructure operator APA Group has agreed to a deal for Alinta Energy Pty. Ltd.’s power networks in Australia’s mining heartland worth A$1.72 billion ($1.1 billion), including debt.
(Bloomberg) — Gas infrastructure operator APA Group has agreed to a deal for Alinta Energy Pty. Ltd.’s power networks in Australia’s mining heartland worth A$1.72 billion ($1.1 billion), including debt.
Chow Tai Fook Enterprises Ltd.-backed Alinta plans to raise A$675 million of new equity to fund the deal through an institutional placement, the company said in a statement on Wednesday. The remainder of the agreement is funded by $993 million of new debt and a $75 million purchase plan for eligible shareholders, the company said.
The deal puts into new hands some of the biggest energy-generation assets powering industry in the vast and remote Pilbara region of Western Australia, an area synonymous with mines ranging from iron ore to lithium.
The expansion by APA is a big move at a moment of flux for energy providers. The deal adds a portfolio heavy with electricity infrastructure as pressure to shift Australia’s energy networks away from fossil fuels mounts — and even as many mining corporations that are turning electric have chosen to invest in their own on-site generation and storage.
Chow Tai Fook, backed by Hong Kong billionaire Henry Cheng, began exploring options for the Australian enterprise more than a year ago.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.