Alinta Gas’ acquisition of United Energy, MultiNet & Ikon Energy
© Utility Consultants Ltd 2003
Prepared by Utility Consultants Ltd
www.utilityconsultants.co.nz
Disclaimer
This research report is of a generalnature, and is not intended as specific
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Contents
Disclaimer
Contents
Introduction
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Formation ofAquila’s interests
in Australia
The Alintatransaction
Introduction
Aquila’s Australian interestsare a complex intertwining ofshareholdings that includesAMP as a major investment
partner
As part of its’ globalwithdrawal, Aquila plans tosell its stakes in a complexdeal that will see Alinta Gasacquire a stake in one of its’
parent entities
This report examinesthe formation of Aquila’sAustralian interests, and
the Alinta transaction
Formation ofAquila’s interests
in Australia
Formation of Aquila’sinterests in Australia has
followed three parallel paths
Acquisitionof United Energy
in Victoria
Acquisitionof MultiNet and IkonEnergy in Victoria
Acquisitionof Alinta Gas in
Western Australia
Disaggregation of the SECVand transfer of the MunicipalElectricity Undertakings intothe five distribution entities,
one of which is United Energy
1994
United Energy acquiredby the Power Partnership forA$1.55b. Power Partnershipis owned 59.13% by Aquila
and 40.87% by AMP
1995
United Energy lists onthe ASX, Power Partnership
sells down 42% to 93,000public shareholders in the
form of 171.4 million stapledsecurities
1998
Formation of UEcommand Utili-Mode in 1997 and
1998 respectively
Public sale of 35.6%of UEcomm in 2000values it at A$950m
Sale of retail businessto Pulse Energy, formed inconjunction with Shell, Ikonand Woodside to operate in
the national market
2000
Formation of energymerchant business EdgeCapin association with Shell and
Woodside
2000
United Energy sells itsstakes in Utili-Mode, Pulse
and EdgeCap to AGLfor A$121m
Energy Partnershipacquires MultiNet and IkonEnergy (stapled retailer) –
25.5% owned by Aquila and74.5% owned by AMP
1999
United Energyawarded contract tomanage the MultiNet
Ikon businesses
1999
Integration of Ikoninto the national dual-fuel
retailer Pulse Energy
2000
Privatisation of AlintaGasin WA saw Aquila and UnitedEnergy acquire 50% each ofa 45% corner-stone share-
holding for A$319.5m
2000
AlintaGas
Public
WA GasHoldings
UnitedEnergy
PowerPartnership
AMP
Aquila
EnergyPartnership
MultiNet
IkonEnergy
55%
45%
50%
43%
57%
74.5%
25.5%
59%
41%
100%
100%
Overall ownership structure
50%
Aquila’s stakes
MultiNet
IkonEnergy
AlintaGas
UnitedEnergy
25.5% indirect stake
25.5% indirect stake
33.6% indirect stake
33.5% indirect stake
The Alintatransaction
The Alinta transactioninvolves the following
3 broad actions
Power Partnershipbuying 43% of United
at $3.15 per share
Alinta and AMPbuying the following
stakes
Formation of a newentity called the AMPHenderson Utilities
Fund
Aquila’s 59% stake inPower Partnership at
$3.15 per share
Aquila’s 50% stakein WA Gas Holdings
Aquila’s 25.5% stakein Energy Partnership
AlintaGas
Public
WA GasHoldings
UnitedEnergy
PowerPartnership
AMP
Aquila
EnergyPartnership
MultiNet
IkonEnergy
55%
45%
50%100%
74.5%
25.5%
59%
41%
100%
100%
Step 1 – Power Partnership buys 43% of United
50%
AlintaGas
Public
WA GasHoldings
UnitedEnergy
PowerPartnership
AMP
Aquila
EnergyPartnership
MultiNet
IkonEnergy
55%
45%
50%100%
74.5%
25.5%
100%
100%
100%
Step 2a – Aquila sells stake in Power Partnership
50%
AlintaGas
Public
WA GasHoldings
UnitedEnergy
PowerPartnership
AMP
Aquila
EnergyPartnership
MultiNet
IkonEnergy
55%
45%
50%100%
74.5%
25.5%
100%
100%
100%
Step 2b – Aquila sells stake in WA Gas Holdings
50%
AlintaGas
Public
WA GasHoldings
UnitedEnergy
PowerPartnership
AMP
Aquila
EnergyPartnership
MultiNet
IkonEnergy
55%
45%
50%100%
100%
100%
100%
Step 2c – Aquila sells stake in Energy Partnership
50%
AlintaGas
Public
AMP
55%
45%
20%
80%
Step 3 – Form AMP Henderson Utilities Fund
UnitedEnergy
MultiNet
IkonEnergy
AMP Henderson Utilities Fund
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