HK group snaps up Vic power station

By Melissa Coade|16 January 2018

The 1,000MW Loy Yang B Power Station, which supplies nearly 20 per cent of Victoria’s energy needs, has been sold.

Firms: Herbert Smith Freehills, Gilbert + Tobin, Allen & Overy (Chow Tai Fook Enterprises); King & Wood Mallesons (Engie in Australia, International Power and Mitsui & Co, Ltd)

Deal: Chow Tai Fook Enterprises (CTFE) has acquired the Loy Yang B Power Station in Victoria.

Value: Undisclosed

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Area: Finance, M&A

Key players: The HSF team advising CTFE on acquisition aspects of the deal was led by partner Robert Nicholson (pictured). Partner Nick Baker, executive counsel Michelle Palethorpe, senior associates Claire Thompson and Brodie Same, along with solicitors Lily Zhang and Madeleine Miller assisted.

The G+T team advising CTFE on financing aspects of the acquisition was led by partners John Schembri and David Kirkland. Solicitors Corrie Eames, Jessica Kim and Felix Buddee assisted.

The Allen & Overy team advising CTFE on ACCC and foreign investment matters was led by partners Aaron Kenavan and Peter McDonald.

KWM advised the vendors Engie and Mitsui.

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White & Case also advised on the deal.

Lazard acted as financial advisor to CTFE, and Rothschild & Co acted as financial advisor to Engie in Australia, International Power and Mitsui & Co., Ltd.

Deal significance:

According to HSF lead partner Robert Nicholson who advised CTFE and Alinta Energy, the 1,000MW Loy Yang B Power Station was a strategic asset for the company.

The brown coal-fired power plant supplies close to 20 per cent of Victoria’s energy needs.

“We were delighted to be able to assist Alinta to acquire this highly strategic, low-cost, reliable and long life asset,” Mr Nicholson said.

Alinta Energy, an Australian gas and electricity retailer, was sold to Hong Kong-based Chow Tai Fook last year for a reported $4 billion.

G+T’s John Schmebri said the new asset would allow CTFE to provide more electricity to the growing east-coast customer base. He added that Alinta planned to expand its generation capacity and market penetration in Australia.

“We are extremely pleased to have assisted Alinta and CFTE in a deal of this size and complexity, and we look forward to working with the team as they take ownership of this important asset,” Mr Schmebri said.

HK group snaps up Vic power station
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