UPDATE 1-Transfield buys Queensland power assets; plans IPO��Reuters.com

SYDNEY, June 9 (Reuters) - Australian industrial services firm Transfield (TSE.AX: Quote, Profile, Research) said on Friday it would pay $179 million (A$239 million) for power assets in Queensland state and prepare an IPO of its infrastructure division.
Shares in Transfield Services Ltd. jumped 8 percent to A$8.15 after news of the purchase from U.S. power firm NRG Energy Inc (NRG.N: Quote, Profile, Research), which has been divesting its foreign operations.
Announcing its second acquisition in two days, Transfield said it would initially fund the deal with debt, but planned to launch this year an initial public offering of its infrastructure business to raise funds to replace that debt.
Transfield is buying 37.5 percent of the coal-fired 1,680 MW Gladstone plant and 100 percent of NRG Gladstone Operating Services, which runs the power station. Other investors in Gladstone include Australia's Comalco Ltd. (CMC.AX: Quote, Profile, Research)
Including acquired debt, the business acquired has an enterprise value of A$281 million, Transfield said. The asset is fully contracted for electricity supply until 2029. Transfield, one of Australia's top-five listed commercial services and supplies companies, said on Thursday it would buy fast-growing contract management company U.S. Maintenance for A$372 million ($276 million) for a foothold in the United States, the world's top outsourcing market.
Transfield's existing services businesses range across industries from oil and gas to telecoms in Australia, New Zealand and Southeast Asia.
Friday's 8 percent upward move recovered all of the stock's losses so far in 2006, but it was still underperforming Australia's S&P/ASX 300 Commercial Services & Supplies index <.AXCSK>, which is up about 5 percent in the year to date. ($1=A$1.35)
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