Herbert Smith Freehills, King & Wood Mallesons, Baker & McKenzie and Ashurst have played pivotal roles in assisting AGL on a $1.5 billion M&A deal.
Firms: Herbert Smith Freehills (AGL); Ashurst (AGL); King & Wood Mallesons (Joint lead managers); Baker & McKenzie (NSW Government)
Deal: AGL acquires multiple assets from Macquarie Generation (MacGen)
Value: $1.505 billion
Area: M&A and capital markets
Key Players: HSF is advising AGL as it goes about acquiring the assets of MacGen, including two power stations, the Liddell Solar Farm and the Hunter Valley Gas Turbine. Partners Philippa Stone, Robert Merrick (pictured) and Natalie Bryce led HSFs team, with a host of other lawyers and partners also involved. Underpinning AGL’s expansion is a $1.2 billion capital raising and $350 million debt funding. HSF is also advising AGL on this aspect of the transaction, with Philippa Stone and Philip Hart leading the capital markets team, assisted by senior associate Lucy Hall and solicitor Charlotte Cameron. HSF’s debt finance team was led by partner John Angus and assisted by senior associate Brad Turner.
KWM have got the gig advising the joint lead managers Citigroup Global Markets Australia Pty Limited, Deutsche Bank AG, Sydney Branch and Merrill Lynch Equities (Australia) Limited on the capital raising. Noted M&A partners David Friedlander and David Eliakim led the firm’s, with support from senior associate Amanda Isouard and solicitor Robert Garritano.
Ashurst acted for AGL in a successful appearance before the the Australian Competition Tribunal in June which granted merger authorisation for AGL's proposed acquisition of Macquarie Generation. Competition specialist Liza Carver led Ashurst's team on this matter.
Bakers acted for the NSW Government. The firm's Australian chairman, Chris Saxon, led his firm's team, with assistance from partners Bryony Binns and Georgina Foster, as well as senior associate Zoe Rafter
Deal Significance: The MacGen Assets give AGL ownership of the lowest cost, large-scale baseload generators in NSW and increase AGL’s registered generation capacity in the National Electricity Market by approximately 82 percent to more than 10,400 MW. MacGen also employs approximately 660 people. “Having previously advised AGL on the acquisition of Loy Yang in Victoria, and now on the acquisition of Macquarie Generation in New South Wales, we are delighted to have assisted AGL in becoming one of the lowest cost baseload generators in the National Electricity Market,” said Merrick.