Decision number200710065
Application number200710063
Date7 June 2007
Offeror/applicantES & L Pty Ltd
Ultimate applicant beneficial ownership50 percent - Singapore, Singapore Government
45.55 percent - Australia, Australian Public
4.45 percent - Various, Various overseas persons
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current100 percent
- Share proposed100 percent
Offeree(s)/seller(s)Existing shareholders in Alinta Limited
97.8 percent - Australia, Australian Public
2.2 percent - Various, Various overseas persons
Business activitiesElectricity, Gas & Water Supply - Electricity & Gas Supply
Details of land involvedNone.
Regions involvedWaikato
Total consideration$8,500,000,000
Consent soughtTo acquire up to 100 percent of the share capital of Alinta Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

The vendor, Alinta Limited, entered into an arrangement with ES & L who is owned by Singapore Power International, Babcock & Brown Space Cat Holdings Pty Ltd and Pinnacle Infrastructure (together the Consortium). The agreement is to acquire 100 per cent of the issued share capital of Alinta. Alinta's principal asset is the Glenbrook Power Station, which will be purchased by Babcock & Brown Power, an associate of ES & L.

The operations and maintenance of Alinta is due for a restructure following Alinta's merger with AGL infrastructure. All members of the Consortium currently have internalised operation and management functions, suggesting potential for enhancement in the operational and management businesses of Alinta.

Combining the portfolio of Alinta's assets and the existing portfolio of Babcock & Brown's assets is a strategic move, as the assets are complementary in terms of asset class, geographic location and synergistic potential. The electric and gas infrastructure assets of Alinta also fit well with the regulated infrastructural portfolios of the Singapore Power group. Therefore the Consortium is in a position to make a better offer in terms of price and execution certainty than each of the entities individually.

ContactAndrew Harmos/Mary-Elizabeth Tuck
Harmos Horton Lusk
P O Box 28
Shortland Street
AUCKLAND