APA Group to acquire Alinta Energy Pilbara for A$1.7bn

Australian energy infrastructure company APA Group on August 23 announced it will acquire Alinta Energy Pilbara, which has assets in Pilbara region of Western Australia, for A$1.7bn ($1.1bn).

Alinta Energy Pilbara has an array of operational assets, including gas and solar power generation, gas transmission, battery energy storage systems, and electricity transmission. It also has a development pipeline that includes projects centered around wind, solar, gas reciprocating engines, BESS, and associated electricity transmission.

To finance this acquisition, APA intends to raise A$675mn. Additionally, the company will embark on a non-underwritten security purchase plan (SPP), which is designed for eligible security holders to contribute towards raising A$75mn.

While these funding methods cover a substantial portion of the purchase price, the remainder will be supported by new debt facilities, the company said. APA Group plans to secure A$993mn in new debt facilities.

“The acquisition of Alinta Energy Pilbara delivers APA a significant new growth platform in the attractive remotegrid 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 Adam Watson said.

Alint Energy said that the sale strengthens its capacity to jointly fund and deliver its renewables and storage projects – including the 1 GW Spinifex offshore wind project in Portland, Victoria, and 900 MW Oven Mountain Pumped Hydro project in New South Wales.