SP AusNet looking for acquisitions

Electricity and gas utility SP AusNet has looked at several potential acquisitions since listing but says it won't be get carried away by the flurry of deal making that has hit the energy sector this year.

Managing director Nino Ficca says the company, which listed on the Australian Stock Exchange in December last year in a $1.4 billion float, has run the ruler over several possible targets in Australia and overseas.

"In some cases the ruler was very long," he told AAP after a Committee for Economic Development of Australia (CEDA) luncheon in Melbourne.

This year has seen a series of takeover bids, counter bids and mergers in the energy and utility sectors.




Mr Ficca said SP AusNet was still keen to make acquisitions in Australia, New Zealand and beyond, but only if the business case stacked up.

"It may well be that some people are a little bit more desperate for diversification," he said.

"But from our point of view, we have got very strong organic growth, we don't to need to be desperately making non-accretive acquisitions."

The company, which is 51 per cent owned by Singapore Power, runs Victoria's electricity transmission network and also has electricity and gas networks across the state.

It has steady, predictable income from its regulated assets, but Mr Ficca says there are also prospects for solid growth, with Victorian energy consumption set to grow by 2.5 per cent a year.

State government owned energy body VENCorp says that between $2 billion and $6 billion will need to be spent on the state's energy infrastructure between now and 2030 as demand grows.

Mr Ficca says SP AusNet will be well placed to take part in some of this work.

"That's very much on our territory and very much in our capability," he said.

Mr Ficca said he was happy with the company's performance since listing even though the share price had been "bouncing around" due to the heavy focus on resource stocks.

The company's full year results are due out on May 25.

SP AusNet stapled securities closed down 1.5 cents at $1.30.


©AAP 2005