APA Group has proposed to acquire Basslink, the holding company for the Basslink Interconnector in Australia for A$773m ($482.7m).
In this regard, the Australian energy infrastructure company has entered into documentation for the potential acquisition with Hydro Tasmania and the State of Tasmania.
The Basslink Interconnector is a 370km long high voltage direct current power transmission line between Victoria and Tasmania.
In November 2021, Basslink was placed into voluntary administration by its then owner Keppel Infrastructure Trust. Subsequently, the project holding company was placed into receivership.
The deal proposed by APA Group is contingent on various preceding conditions. These include the approval of the deed of company arrangement proposed by the energy infrastructure company at the second meeting of Basslink’s creditors, which is slated to take place on 18 October 2022.
APA Group said that the proceeds will be utilised for repaying the creditors of Basslink. This includes APA Group’s own existing senior secured debt of A$648m ($404.6m).
In March 2022, the energy infrastructure company acquired 100% of the senior secured bank debt of Nexus Australia Management, which is the borrowing entity of Basslink, at a discount to face value. APA Group has been taking part in a receiver-led process for the sale, restructure, or recapitalisation of Basslink’s business.
As part of the deal, the full amount of APA Group’s accumulated debt and interest will be repaid by it being in effect set off against the price of purchase.
