ATCO has announced that it has signed a conditional agreement to acquire Western Australia Gas Networks (WAGN) from WestNet Infrastructure Group, the natural gas distribution utility company that serves the City of Perth and surrounding areas.


The terms of the arrangement will see ATCO acquire a 74.1 per cent interest in WAGN from WestNet Infrastructure Group through AET&D Holdings No 1 Ltd. ATCO will acquire the remaining 25.9 per cent interest in WAGN from DUET Group, giving ATCO 100 per cent ownership in the company. The asset will become a 100 per cent owned subsidiary of Canadian Utilities, an ATCO company.


ATCO Australia Managing Director Steven Landry said the acquisition is an excellent fit for ATCO's growth strategy to own and operate energy infrastructure in the rapidly expanding Australian market.


"The purchase of Western Australia Gas Networks builds upon our deep expertise in the safe, reliable and efficient transportation and distribution of natural gas to consumers," Mr. Landry said.

 

"This asset also strengthens ATCO Australia's presence and further marks our commitment to the Australian market."


The aggregate purchase price of the proposed acquisition, including transaction costs, is approximately A$1.0 billion, including the assumption of approximately A$644 million of debt. The balance of the aggregate purchase price will be funded with existing cash reserves.


WAGN connects more than 620,000 customers through 12,800 km of natural gas pipelines and associated infrastructure. It provides service throughout the Perth metropolitan area including Mandurah, as well as the surrounding regions of Geraldton, Bunbury, Busselton, Kalgoorlie, Albany, Harvey, Pinjarra, Brunswick Junction and Capel.


Included in the acquisition is WestNet Infrastructure Group's information technology division, a supplier of information technology services to key utility companies within AET&D Holdings.


The proposed acquisition is subject to approval from the Australian Foreign Investment Review Board, approval of certain former holders of exchangeable preference shares of WestNet Infrastructure Group, the concurrent sale to third parties of interest in other assets within WestNet Infrastructure Group as well as other customary conditions. The proposed acquisition is anticipated to close in the third quarter of 2011.


ATCO Australia provides services in Australia under the following segments: the Power Division, the Energy Infrastructure Division and Operations Division, and workforce housing, facilities management and modular building solutions, provided by ATCO Structures & Logistics.


ATCO Australia operates three progressive power generation plants in the country: Osborne Cogeneration Facility located in Adelaide, South Australia, Bulwer Island Cogeneration Facility located in Brisbane, Queensland and the new energy efficient Karratha Power Plant located in the Pilbara region of Western Australia.

 

More information can be found at www.atcoaustralia.com.au