APA Group, which is Australia’s leading energy infrastructure business, has confirmed that it has entered into documentation to acquire Basslink potentially.
The news comes after Basslink selected the group as its preferred bidder on Sept 7.
Under the proposal, APA will acquire Basslink for A$773 million ($683.1 million). These proceeds will be used to repay Basslink creditors, including APA’s existing senior secured debt of A$648 million, says the group in an Oct 17 statement.
Basslink is the Australian subsidiary of Keppel Infrastructure Trust (KIT). It owns and operates the 370km high voltage direct current electricity interconnector between Victoria and Tasmania.
The transaction is subject to a few conditions, which include the approval of the deed of company arrangement proposed by APA at the second meeting of creditors of Basslink. This is scheduled to be held on Oct 18.
As at 9.02am, shares in KIT are trading flat at 52.5 cents.
