APT has agreed to purchase all of Allgas’ shares from Energex Limited, a Queensland Government corporation, for $521 million.

Allgas is the first of a series of government-owned energy assets that will be put up for sale. The others include Sun Retail (Energex’s electricity retail arm), Sun Gas (its gas retailing business) and the commercial parts of Ergon Energy’s electricity retail business.

As well as the shares, APT will acquire the holding company for the Allgas regulated gas distribution network in the regulated capital base, the unregulated Moura pipeline and rights in the planned Gatton to Gympie pipeline.

“The acquisition of Allgas significantly enhances our growth profile. It is a good strategic fit and transition into our business is expected to be smooth,” said APT managing director Mick McCormack in a statement.

As part of the deal, APT will take on the current management team and 35 staff.

The proceeds of the sale will form the first investment in the Queensland Future Growth Fund, which will be used to fund infrastructure such as dams and weirs, as well as being invested in the development of “clean coal technology”.

The Allgas distribution network includes 2,398 kilometres of regulated gas distribution network in south-east Queensland and northern New South Wales, supplying more than 65,000 consumers.

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Legal advice to APT was also provided by new Australian firm Chang Pistilli & Simmons.

Lawyers from Gadens who worked on the deal were unavailable for comment.