Australian natural gas operator APA Group said on Monday it had proposed to buy electricity interconnector Basslink Pty Ltd for A$773 million ($480.3 million) from administrators to expand its energy transmission footprint.
Basslink owns a 370 km (229.9 mile) high-voltage direct-current electricity interconnector between the states of Victoria and Tasmania. The company was put into administration last year by its then Singapore owner Keppel Infrastructure Trust KEPL.SI.
APA said the deal would allow it to continue to build on its energy infrastructure business and invest in renewable energy sources. APA currently owns or manages a A$21 billion portfolio of gas, electricity, solar and wind assets.
The proceeds from the potential deal would be used to repay Basslink creditors, including APA’s senior secured debt of A$648 million, it added.
Earlier this year, the New South Wales-based company acquired a stake in the senior secured bank debt of Nexus Australia Management Pty Ltd, the borrowing entity of Basslink.
Reuters