Ashurst have advised a consortium made up of IFM Investors and AustralianSuper in its acquisition of state owned electricity company, Ausgrid, in a privatisation deal worth A$16.189 billion.
The State of New South Wales has privatised 50.4% of the Ausgrid assets through a dual partnership structure between IFM Investors and AustralianSuper for $10.258 billion, with gross proceeds going to the state of $16.189 billion due to a 100% re-financing of Ausgrid's debt plus stamp duty.
The State will retain 49.6% interest in the two partnerships which will enter into a long-term 99-year lease for the core network assets. The deal was executed on 20 October and expected completion is in mid-December 2016. The privatisation is the largest M&A transaction in 2016 in Australia to date.
Ausgrid is the owner, operator and manager of the largest distribution network in the National Electricity Market by regulated asset base. The network provides over 25,000 GWh per year across a franchise area spanning 22,275 square kilometres.
The debt raising is one of the largest in the Australian market's history. This includes being the largest ever privatisation by an Australian State and the largest privatisation since that of Telstra.
Lead partner on the deal Murray Wheater (Corporate) comments: "We have been privileged to work with IFM Investors and AustralianSuper and their advisers (including co-counsel HSF) in a very short time frame to sign a landmark transaction. The unsolicited proposal approach by the buyers is innovative and reflects the unique circumstances arising from FIRB's rejection of the previous bids by China State Grid and CKI."
Lead banking partner David Mason said: "This is one of the largest acquisition finance facilities ever arranged in the Australian market and the banking deal of the year. It was a real team effort between IFM, AustralianSuper, Macquarie and Ashurst to negotiate and finalise this facility in the very short period allowed by the State."
Ashurst worked with the inhouse teams at IFM (Sharon Michael, Chris Munro and John O'Grady) and AustralianSuper (Romina Gaudion and Serlina Chu).
The team was led by Murray Wheater. Murray was assisted by senior associate Samantha Robson, lawyer Tom Jalland and graduates Adelle Elhosni, Alexandra Rennie and Beth Waterfall (Corporate); Partner Con Tzerefos, senior associate Sarah Galloway and lawyer Aaron Yorke (Superannuation); Partner David Mason, senior associate Douglas Fung, counsel Mok Stanley, lawyers Jason Wong and Kavisha Bilimoria and graduate Lu Wilson (Finance); Partner Peter Limbers, counsel Justin Jones, senior associates Andrew Kelley, Andre Dauwalder and Cassandra Wee and graduate Imogen Loxton (Utilities); Partners Stephen Woodbury, Lea Constantine and Richard Bunting, senior associates Heidi Fairhall, Dominic Fleeton and Liz Grey and lawyer Hannah Martin (Employment); Partner Tim Brookes, senior associate Rebecca Cope and lawyers Daniela Lai, Katherine Velos and Shawn Burns (Telecommunications); Partner Damien Salsbury, senior associate Carol Kahler and lawyer Harry Stone (Property); Partner Tony Denholder and counsel Nerida Cooley (Native Title); Partner Rehana Box, senior associate Philip Hopley and lawyer Marie Vlassis (Insurance); Partners Jeff Lynn and Rebecca Dixon, senior associate Jane Hall, lawyer Jo Slater and graduates Mia Swift and David Baldi (Environment); Senior associate Elizabeth Ireland (Intellectual Property); and Consultant David Sefton (Workers Compensation).
