Spark Infrastructure Accepts Buyout Offer from KKR, PSP, and OTPP

Posted on 08/23/2021

Spark Infrastructure Group is an Australian investment fund which owns and manages a portfolio of electricity infrastructure assets. Spark Infrastructure agreed to be acquired for A$ 5.2 billion by private equity firm KKR & Co., Ontario Teachers’ Pension Plan Board, and PSP Investments. The parties have entered into a scheme implementation deed (SID) in this connection. The SID will be subject to the approval of the Australian Foreign Investment Review Board (FIRB), court approval, Spark Infrastructure’s shareholders’ approvals, and others.

The buyout deal gives Spark Infrastructure an enterprise value of A$ 10.1 billion.

Spark Infrastructure owns stakes in distribution networks SA Power Networks and Victoria Power Networks. Spark Infrastructure has a 15% stake in electricity transmission network Transgrid apart from fully owing the 100MW Bomen Solar Farm in New South Wales.

Spark Infrastructure chair Doug McTaggart said in a release, “The Spark Infrastructure Board unanimously recommends Securityholders vote in favour of the Schemes in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Schemes are in the best interests of Spark Infrastructure securityholders.

“The Board and management have engaged constructively with the Consortium over several months to secure additional value beyond the initial approach.”

After two failed attempts by KKR and Ontario Teachers’ Pension Plan Board to takeover Spark Infrastructure, this third one worked.

Keywords: Ontario Teachers Pension Plan.

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