Spark accepts $5.2bn takeover bid from American consortium

Australian electricity network owner Spark Infrastructure has accepted a $5.2 billion takeover bid from a North American consortium led by private equity giant Kohlberg Kravis Roberts & Co.

August 24, 2021 Bella Peacock

Spark has interests in networks servicing more than 5 million customers in the NEM.

Image: Powercor

On Monday, Spark Infrastructure announced the finalisation of its takeover by a North American consortium, comprised of Kohlberg Kravis Roberts & Co, Ontario Teachers’ Pension Plan Board, and the Public Sector Pension Investment Board. It was the consortium’s third buyout offer and valued Spark at $5.2 billion, after initially bidding just half that.

In an Australian Stock Exchange announcement, Spark confirmed it had accepted the offer, entering into a binding agreement with the consortium, which has completed its due diligence.

Spark Infrastructure owns a 49% stake in the Victorian distribution operators Powercor and CitiPower, 49% of South Australia’s distribution network operator SA Power Networks, and a 15% stake in transmission network operator Transgrid in New South Wales.

Until recently, Spark was exclusively an investor in regulated network infrastructure but it has begun developing a portfolio of wind, solar and storage assets, targeting more than $1 billion of investment in renewable energy generation by 2025.

In July, it announced plans to develop a 2.5 GW hybrid wind, solar PV and battery storage project in New South Wales while the 100 MW Bomen Solar Farm came online last year.

The company has also revealed it has plans to construct a 60 MW extension at the Bomen Solar Farm as well as a yet to be identified 150 MW solar+storage project and a 350 MW wind farm in NSW along with a massive 600 MW wind farm project in South Australia.

Under the agreement, the consortium will acquire all of the units in the Spark Infrastructure Trust by means of Trust Scheme and all of the loan notes issued by Spark RE by means of Creditors’ Scheme, the company’s statement said.

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