MALLESONS STEPHEN JAQUES acted for TRUenergy in its power station swap with AGL Energy, which includes Australia’s largest gas-fired power station.
The deal will involve TRUenergy selling its Torrens Island power station in South Australia to AGL for $417 million and acquiring AGL’s Hallett power station in Victoria for $117 million. The transaction also involves electricity and wholesale gas supply and delivery arrangements.
The law firm said it had to devise a complex and detailed structure for the transaction, including corporate structuring and long-term energy supply arrangements, as well as running simultaneous sale agreement negotiations and resolving regulatory issues associated with large electricity generating plants.
Partner Louis Chiam led the team supported by partners Vishal Ahuja and David Perks and senior associate Paul Lingard. The team also included Mallesons’ lawyers from Melbourne and Perth with expertise in electricity regulation and sale transactions for large infrastructure assets.
“We advised China Light & Power back in 2005 when it originally acquired the merchant energy business, now known as TRUenergy,” said Chiam.
“Our ongoing relationship gives us a detailed understanding of TRUenergy’s business and commercial objectives.”
TRUenergy managing director, Richard McIndoe, said in a statement that the transaction will provide the company with a more balanced and flexible portfolio, and position the company to compete and grow in line with its corporate strategy.
The company is also developing the 400 megawatt Tallawarra power station in New South Wales.
TRUenergy supplies gas and electricity to 1.1 million homes in Victoria, South Australia and New South Wales, as well generating electricity in both Victoria and South Australia.
The transaction should be completed on 2 July pending Australian Competition and Consumer Commission clearance and other third-party consents.