| Decision number | 200710066 |
|---|---|
| Application number | 200710064 |
| Date | 7 June 2007 |
| Offeror/applicant | Babcock & Brown Power |
| Ultimate applicant beneficial ownership | 83 percent - Australia, Australian Public 6 percent - United States of America, United States Public 6 percent - Various, Asian Investors 4.5 percent - Various, European Public 0.5 percent - Various, Various overseas persons |
| Beneficial overseas ownership | |
| - Asset current | 100 percent |
| - Asset proposed | 100 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | Alinta Limited 97.8 percent - Australia, Australian Public 2.2 percent - Various, Various overseas persons |
| Business activities | Electricity, Gas & Water Supply - Electricity & Gas Supply |
| Details of land involved | None. |
| Regions involved | Waikato |
| Total consideration | $232,000,000 |
| Consent sought | To acquire property being a power station at Mission Bush Road, Glenbrook, Glenbrook Beach |
| Rationale | The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987. The vendor, Alinta Limited, entered into an arrangement with ES & L who is owned by Singapore Power International, Babcock & Brown Space Cat Holdings Pty Ltd and Pinnacle Infrastructure (together the Consortium). The agreement is to acquire 100 per cent of the issued share capital of Alinta. Alinta's principal New Zealand asset is the Glenbrook Power Station. This will be purchased by Babcock & Brown Power (BBP), a specialist infrastructure entity of Babcock & Brown. The Glenbrook power station clearly fits within BBP's investment criteria and BBP views Glenbrook as a quality power generation asset which has solid revenues and economic returns. BBP already has geographic diversity within Australia and BBP considers that Glenbrook will complement its existing portfolio and further diversify its geographic footprint. Glenbrook represents an opportunity for BBP to acquire a significant New Zealand based power asset which will represent BBP's first overseas and New Zealand based asset. |
| Contact | Andrew Harmos/Mary- Elizabeth Tuck Harmos Horton Lusk PO Box 28 Shortland Street AUCKLAND |