Firms: Gilbert + Tobin (Beach Energy); Herbert Smith Freehills (Origin Energy); King & Wood Mallesons (underwriters)
Deal: Beach Energy successfully bid to acquire oil and gas business Lattice Energy from Origin Energy.
Value: $1.585 billion
Area: Energy and resources; M&A
Key players: The Gilbert + Tobin transaction team advising Beach Energy was led by partners Peter Cook and Chris Flynn, with assistance from lawyers Tim Kennedy, Lester Lim Kok, Shelley Burger, Christopher Marchesi, Henry Cornwell and graduate Denitsa Vasileva. The transaction team was also assisted by TMT partner Michael Caplan, competition and regulatory partner Simon Muys, native title partner Marshall McKenna, special counsel Albert Yuen and lawyer Rohan Westbury, as well as the firm’s tax, environment, litigation and disputes, employment and property groups.
The Gilbert + Tobin team advising on the equity capital raising for the transaction is led by partners Peter Cook and Adam D’Andreti, assisted by lawyers Kevin Ko and Lily Zhang. The Gilbert + Tobin team advising on the debt financing for the transaction is led by partners Simon Lynch and Adela Smith, assisted by lawyers Melissa Ramsay and Corrie Eames.
Deal significance: Beach Energy has successfully bid to acquire Lattice Energy from market giant Origin Energy for $1.585 billion.
The deal will fast-track Beach Energy’s expansion in the east coast oil and gas market, more than doubling its production. Lattice made long-term gas and LPG sales arrangements with Origin Energy as part of the deal.
Beach Energy will fund the acquisition through $1.575 billion in senior secured debt facilities and a $301 million accelerated non-renounceable entitlement offer underwritten by Credit Suisse, Goldman Sachs and UBS.
The offer was agreed upon after a competitive sales process. Origin also considered floating Lattice on the ASX as an alternative.
Gilbert + Tobin partner Chris Flynn said the deal was a milestone for Beach Energy.
“We are thrilled to be advising Beach Energy on this significant transaction,” he said.
“The acquisition of Lattice Energy is an important step in Beach Energy’s strategy to take its place as a premier regional gas producer and supplier with prime upstream oil and gas assets across the major producing and exploration basins in Australia and New Zealand.”
The acquisition is subject to approval by the New Zealand Overseas Investment Office and the New Zealand Minister of Energy and Resources.