Brookfield Asset Management to Buy AusNet Services

Posted on 11/01/2021

AusNet Services Ltd has agreed to a binding takeover offer from a consortium including Brookfield Asset Management in a deal that values the business at A$ 10.2 billion in equity value and an enterprise value of A$ 17.8 billion. AusNet Services is an Australian natural gas transmission company. AusNet said its board unanimously supports the A$2.65 per share offer from the group.

The buyer investor group is called Australian Energy Holdings No 4 Pty Ltd and is composed of Brookfield, Sunsuper Pty Ltd, Alberta Investment Management Corporation, the Investment Management Corporation of Ontario, and Healthcare of Ontario Pension Plan.

AusNet’s largest shareholder is Singapore Power International Pte (which currently owns 32.74% of the AusNet shares) and supports the deal and intends to vote in favor of it. The second largest shareholder is State Grid Corporation of China.

On September 21, 2021, AusNet received an unsolicited, indicative, non-binding and conditional proposal from APA to acquire all of the issued shares of AusNet at an indicative price with a notional value of A$ 2.60 per share. The shareholders decided to go with the Brookfield offer.

Singapore Power holds its ownership interest in AusNet via Singapore Power International Pte Ltd and SP eResources Pte Ltd.

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