SP AusNet still in running for Basslink
Email
Print
Normal font
Large font
July 17, 2007 - 2:39PM
AdvertisementAdvertisement
SP AusNet is in the running to buy Tasmanian electricity cable the Basslink Interconnector, as it awaits a decision by parent Singapore Power on what Alinta Ltd assets it might be offered.
Power and gas utility SP AusNet on Tuesday confirmed it is interested in acquiring Basslink, which is owned by UK-based National Grid Plc and is expected to have a price tag of more than $1 billion.
SP AusNet managing director Nino Ficca told AAP after the company's annual general meeting in Melbourne that it was involved in the bidding process.
Indicative bids have already been tabled with final bids due at the end of the month.
"We have been involved in that process and it hasn't reached a final conclusion in terms of our particular involvement," Mr Ficca said.
"There are a number of other parties involved from the way we understand it, but don't know exactly who else is involved."
Other possible bidders are believed to include APA Group, formerly the Australian Pipeline Trust, Transfield Services Ltd, Macquarie Bank Ltd, AMP Ltd and ANZ Banking Group Ltd.
Hydro Tasmania and the Tasmanian state government have ruled out making a bid for the asset, which cost around $850 million to build and is the world's longest undersea electricity cable, providing an electricity hookup to the mainland.
Meanwhile, talks continue with SP AusNet's 52 per cent shareholder and parent Singapore Power over what Alinta assets it might be able to pick up.
Singapore Power is part of a Babcock & Brown Ltd-led consortium offering $8.04 billion for Alinta and has previously said it is interested in the target's regulated and contracted assets.
"SP AusNet will be given the opportunity to assess Alinta assets to be acquired by Singapore Power, should they be successful in their bid," Mr Ficca told assembled shareholders.
"We look forward to the opportunity this may provide SP AusNet and we will continue to keep security holders and the market informed as the independent review process progresses."
After the meeting he told AAP that any announcement of a formal offer would likely come after Alinta shareholders gather to vote on the offer on August 15.
"I don't think there's anything likely to be before that, but we'll keep you posted," Mr Ficca said.
"There's been discussions but no formal position yet," he said.
"We'll keep the market posted as we get more information."
Also at the meeting, SP AusNet reiterated that it expects to achieve distribution growth of around 2.5 per cent in fiscal 2008.
"We remain committed to delivering stable, sustainable and predictable distributions to security holders and expect to achieve growth on last years distribution of around two and a half per cent in the coming year," he said.
SP Ausnet in May reported 18 per cent rise in annual net profit from continuing operations to $161.25 million and confirmed a distribution of 11.27 cent for the 2007 fiscal year.
SP AusNet shares closed down 0.5 cents to $1.425.
© 2007 AAPBrought to you by