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Energy company bought out of power station

Energy company bought out of power station

Rob Merrick, Herbert Smith Freehills

Two global firms have advised on the sale of AGL Energy's stake in the Diamantina Power Station to its joint venture partner, APA Group.

Firms: Herbert Smith Freehills (AGL Energy); King & Wood Mallesons (APA Group)

Deal: AGL Energy sold its 50 per cent interest in Diamantina Power station to APA group.

Value: $151 million

Area: M&A

Key players: The Herbert Smith Freehills team was comprised of partner Rob Merrick, senior associate Charlotte Cameron and solicitor Geoff Kerrigan. They worked closely with AGL's group counsel of group operations Hilary Thorpe.

The King & Wood Mallesons team was led by partner Craig Rogers and senior associate Roderick Smythe, with support from Theadora Tsangari and Michelle Crocker.

Deal significance: AGL Energy Limited (AGL) sold its 50 per cent equity interest in the Diamantina Power Station joint venture (DPS) to APA Group, its joint venture partner in DPS, for $151 million.

The acquisition fits within APA’s growth strategy by adding further to their infrastructure business, according to a release from King & Wood Mallesons.

DPS is located in Mount Isa, Queensland and comprises the 242MW combined cycle gas turbine Diamantina Power Station and the 60MW open cycle gas turbine Leichhardt Power Station, serving its foundation customers Glencore and Ergon.

AGL will continue to supply gas to DPS under the existing gas sales agreement, which runs until 2023.

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