Allens and Linklaters have acted on State Grid Corporation of China’s acquisition of 41 percent stake in the unlisted south Australian electricity supplier, ElectraNet.
State Grid, the world's largest state utility, was reported to have paid A$500 million ($523 million) to buy the stake from Queensland state government's Powerlink, according to Reuters. State Grid was advised by Barclays Capital on the financial aspects of the deal.
In what marks the first significant Chinese investment in an Australian utility, Linklaters partners Judie Ng Shortell and Thomas Ng and Allens partners Grant Anderson and Wendy Rae worked together in a combined team to advise State Grid on issues including negotiation of the transaction documents, due diligence, obtaining FIRB approval, and Hong Kong corporate law.
“Australia is a key market for Chinese outbound investment,” said Shortell in a statement. “We expect that the successful ElectraNet acquisition will encourage other Chinese entities to pursue future acquisitions in Australia.”
This transaction was also one of the two firms’ first joint deals since their pan-Asian joint venture alliance established in March, which is strategically focused on energy and resources development, project finance, infrastructure work, and mergers and acquisitions in the region.
'The Australian power sector is undergoing rapid change, with increasing international investor appetite for this country's regulated assets and upcoming electricity privatisations, such as that in New South Wales,” said Anna Collyer, head of Allens' power and utilities practice.
“Successful closing of the transactions clearly demonstrates Linklaters' and Allens’ ability to help Chinese clients achieve their commercial objectives, both in Australia and the wider region,” added Ng.
Liu Zhen is China senior journalist at ALB. follow us on Twitter: @ALB_Magazine.
Other related stories: