SPI (Australia) Assets Pty Ltd has announced that after satisfying the conditions precedent, the regulatory approvals to allow State Grid of China to buy a 20% stake in SP AusNet and a 60% stake of Jemena gas and electricity from Singapore Power have been received from the Federal Treasurer and the transaction completed.
This comes after the deadline for satisfying the conditions precedent (which elapsed on November 16, 2013) was extended to allow the sale to occur.
SPI Assets Pty Ltd announced on 17 May 2013 that Singapore Power International Pte Ltd (SPI) had agreed to sell 60% of its shareholding in the Company (and also 60% of its interest in the SPI (Australia) Trust) to State Grid of China.
State Grid is the world’s largest electric utility and ranked seventh in the Fortune Global 500.
SP AusNet is a dual Australian Securities Exchange and Singapore Exchange listed energy infrastructure entity which owns and operates electricity transmission networks, electricity distribution networks and gas distribution networks in Victoria. Jemena is a private company that owns and operates electricity, gas and water assets in eastern Australia.
The sale was approved on the condition that at least 50 per cent of the members to be appointed by State Grid to the Boards of SP AusNet and Jemena are Australian citizens who are ordinarily resident in Australia.
Additionally, Standard and Poor’s have announced that they have revised the SP AusNet Group’s long-term rating from BBB+ “CreditWatch with positive implications” to A- “Stable”.