Australian Utilities Trust (AUT), a consortium comprising Utilities Trust of Australia (UTA), The Infrastructure Fund (TIF) and Sunsuper, has today signed an agreement to acquire an additional 33.5% interest in South Australian transmission network ElectraNet, from YTL Corporation. The transaction will increase AUT’s ownership of ElectraNet from 19.94% to 53.4%. The sale consideration of A$1.026 bn represents a valuation range of 1.5x to 1.6x the regulated and contracted asset base (RCAB) of the company, which is consistent with recent transaction multiples.
ElectraNet is South Australia’s principal transmission network, delivering reliable and affordable electricity to approximately 1.7 million South Australians, via its 5,900 km of overhead transmission lines, across 200,000 square kilometres of service area.
AUT has been invested in ElectraNet since 2003, during which time the electricity sector has undergone substantial change, particularly as the sector decarbonises. ElectraNet has invested significantly in the regulated network to support a reliable transition towards renewable energy sources in South Australia. ElectraNet is currently delivering the South Australian component of Project EnergyConnect, which will provide a new high-voltage electricity interconnector between South Australia and New South Wales, and connect more, low-cost renewable generation to the national electricity grid. ElectraNet has also established a substantial and growing commercial business, delivering major projects for business customers in Australia, including a wide range of private transmission assets connecting wind and solar farms. This includes the Dalrymple 30 MW, 8 MWh battery energy storage system, which provides renewable energy storage and is improving reliability for the lower Yorke Peninsula, along with a 270 km private transmission line.
AUT looks forward to continuing its support for ElectraNet and the electricity needs of South Australia.
The transaction is expected to complete by the end of the second quarter of the 2022 calendar year.
RBC Capital Markets and Johnson, Winter & Slattery are advisers to AUT.