Transcript [title]

Alinta Gas’ acquisition of United
Energy, MultiNet & Ikon Energy
Prepared by Utility Consultants Ltd
www.utilityconsultants.co.nz
© Utility Consultants Ltd 2003
Disclaimer
This research report is of a general
nature, and is not intended as specific
professional advice. Accordingly, neither
Utility Consultants, nor its’ directors and
shareholders, shall be liable for any loss
or damage arising from action or inaction
based on this research report.
Contents
Disclaimer
Formation of
Aquila’s interests
in Australia
Contents
The Alinta
transaction
Introduction
Feedback
Contact us
Introduction
Aquila’s Australian interests
are a complex intertwining of
shareholdings that includes
AMP as a major investment
partner
As part of its’ global
withdrawal, Aquila plans to
sell its stakes in a complex
deal that will see Alinta Gas
acquire a stake in one of its’
parent entities
This report examines
the formation of Aquila’s
Australian interests, and
the Alinta transaction
Formation of
Aquila’s interests
in Australia
Formation of Aquila’s
interests in Australia has
followed three parallel paths
Acquisition
of United Energy
in Victoria
Acquisition
of MultiNet and Ikon
Energy in Victoria
Acquisition
of Alinta Gas in
Western Australia
Disaggregation of the SECV
and transfer of the Municipal
Electricity Undertakings into
the five distribution entities,
one of which is United Energy
United Energy acquired
by the Power Partnership for
A$1.55b. Power Partnership
is owned 59.13% by Aquila
and 40.87% by AMP
1994
1995
Formation of UEcomm
and Utili-Mode in 1997 and
1998 respectively
Public sale of 35.6%
of UEcomm in 2000
values it at A$950m
United Energy lists on
the ASX, Power Partnership
sells down 42% to 93,000
public shareholders in the
form of 171.4 million stapled
securities
1998
Sale of retail business
to Pulse Energy, formed in
conjunction with Shell, Ikon
and Woodside to operate in
the national market
Formation of energy
merchant business EdgeCap
in association with Shell and
Woodside
United Energy sells its
stakes in Utili-Mode, Pulse
and EdgeCap to AGL
for A$121m
2000
2000
Energy Partnership
acquires MultiNet and Ikon
Energy (stapled retailer) –
25.5% owned by Aquila and
74.5% owned by AMP
1999
United Energy
awarded contract to
manage the MultiNet
Ikon businesses
1999
Integration of Ikon
into the national dual-fuel
retailer Pulse Energy
2000
Privatisation of AlintaGas
in WA saw Aquila and United
Energy acquire 50% each of
a 45% corner-stone shareholding for A$319.5m
2000
Overall ownership structure
Public
55%
43%
AlintaGas
45%
WA Gas
Holdings
50%
United
Energy
41%
AMP
Power
57% Partnership
59%
50%
Aquila
MultiNet
100%
Energy
Partnership
Ikon
Energy
25.5%
74.5%
100%
Aquila’s stakes
AlintaGas
33.5% indirect stake
United
Energy
33.6% indirect stake
MultiNet
25.5% indirect stake
Ikon
Energy
25.5% indirect stake
The Alinta
transaction
Power Partnership
buying 43% of United
at $3.15 per share
The Alinta transaction
involves the following
3 broad actions
Alinta and AMP
buying the following
stakes
Formation of a new
entity called the AMP
Henderson Utilities
Fund
Aquila’s 59% stake in
Power Partnership at
$3.15 per share
Aquila’s 50% stake
in WA Gas Holdings
Aquila’s 25.5% stake
in Energy Partnership
Step 1 – Power Partnership
buys 43% of United
Public
55%
AlintaGas
45%
WA Gas
Holdings
50%
United
Energy
41%
AMP
Power
100% Partnership
59%
50%
Aquila
MultiNet
100%
Energy
Partnership
Ikon
Energy
25.5%
74.5%
100%
Step 2a – Aquila sells stake
in Power Partnership
Public
55%
AlintaGas
45%
WA Gas
Holdings
50%
United
Energy
100%
AMP
Power
100% Partnership
50%
Aquila
MultiNet
100%
Energy
Partnership
Ikon
Energy
25.5%
74.5%
100%
Step 2b – Aquila sells
stake in WA Gas Holdings
Public
55%
AlintaGas
45%
WA Gas
Holdings
50%
United
Energy
100%
AMP
Power
100% Partnership
50%
Aquila
MultiNet
100%
Energy
Partnership
Ikon
Energy
25.5%
74.5%
100%
Step 2c – Aquila sells stake
in Energy Partnership
Public
55%
AlintaGas
45%
WA Gas
Holdings
50%
United
Energy
100%
AMP
Power
100% Partnership
50%
Aquila
MultiNet
100%
Energy
Partnership
Ikon
Energy
100%
Step 3 – Form AMP
Henderson Utilities Fund
Public
55%
AlintaGas
45%
AMP Henderson
Utilities Fund
MultiNet
Ikon
Energy
20%
United
Energy
AMP
80%
Feedback
Hi … I’m Phil Caffyn from
Utility
Consultants.
I’d
really like your feedback on
this report, so please pick
one of the buttons below to
email me…
Excellent
Very good
Good
Average
Poor
Contact us
Phone us on
+64-7-8546541
Pick here to
email a question
Pick here to receive
our free industry
newsletter Pipes & Wires
Pick here to visit our
website (and see our
other research reports)