AGL’s $1.5 billion bid for Southern Hydro and two $1 billion-plus
floats means it it time to once again fire up Crikey’s great list of
energy sector deals over the past
decade which now includes the investment bankers who advised on each
sale. Please send in your additions or corrections to the following
list to smayne
November 1992: The Kennett government picks up the Kirner
Government’s tortuous privatisation process of the Loy Yang B power
station and sells 49 per cent to Mission Energy for $1.3 billion with
an over-priced long term supply contract. CS First Boston’s Nick
Johnson advised the government and Macquarie’s Jim McMeckan advised
October 1993: Boral outbids Santos to secure South Australian gas distributor Sagasco for $816 million.
March 1994: Gladstone Power Station, Queensland’s biggest, was sold
by the Goss government to Comalco, NRG and a group of aluminium
traders. At the time it was the largest private power acquisition in
the world but had the safety of a long-term power supply deal back to
the government. UBS advised the government and JP Morgan did Comalco.
Keating government completes the $500 million sale of the Moomba to
Sydney gas pipeline to AGL with 51 per cent and Gasinvest with 49 per
March 1995: The Queensland Government awarded a $130 million
contract to NRG and Transfield refurbish and recommission the
Collinsville coal-fired power station.
May 1995: Texas-based Tenneco joined with Santos to buy the
Pipelines Authority of South Australia from the SA government for $304
August 1995: Kansas City-based Utilicorp, AMP
and NSW State Super buy Victorian electricity distributor and retailer
United Energy for $1.553 billion from the Kennett Government.
Deutsche’s Alan James and Peter Berry from UBS advised the buyer and
John Wylie and Andrew Leydon from CS First Boston advised the Kennett
Government as they did for about 14 different privatisation deals
listed further down.
September 1995: AGL and US company
GPU pay $950 million for Solaris Power, the smallest of the five
Victorian electricity distributors based in Melbourne’s western
suburbs. Morgan Stanley’s Nick Johnson advised AGL-GPU and CSFB advised
the government as usual.
November 1995: Powercor, the largest Victorian distributor covering
the western half of the state, sold to US utility PacifiCorp for $2.15
billion. It was advised by BZW’s Richard Elmslie.
December 1995: Texas Utilities buys Eastern Energy for $2.08 billion with advice from David Willis from Lloyds NZA.
December 1995: Citipower bought by New Orleans-based utility Entergy for $1.57 billion with advise from Hambros’ David Williams.
PowerGen of Britain leads a consortium including Itochu, AMP, Hastings
and NSW State Super which paid $2.43 billion for the 1800 megawatt
Yallourn power station in the Latrobe Valley. The buyers were advised
by Peter Berry from UBS.
August 1996: Britain’s National
Power and its US partners Destec and PacifiCorp paid a ridiculous $2.3
billion for the 30-year old Hazelwood Power station in the Latrobe
Valley and it was BZW’s Richard Elmslie who advised on this deal.
Edison Mission Energy renegotiates long term power sale deal done with
Kirner and Kennett governments and takes over a $1.1 billion liability
and 100 per cent ownership of the 1000 megawatt Loy Yang B power
station in the Latrobe Valley. Macquarie advised Edison again and CSFB
advised the government.
April 1997: Chicago-based NRG and fellow US utility CMS team up
with adviser Macquarie Bank to buy Loy Yang A for a staggering $4.85
billion. Naturally, Macquarie provided the advice, even though
everything later went pear-shaped.
October 1997: US utility GPU pays an excessive $2.55 billion for
monopoly transmission company Powernet Victoria. JP Morgan’s Chris
Sadler advised GPU.
November 1997: Infratil and NZ company Contact Energy pay $391
million for Southern Hydro, Victoria’s small hydro power outfit. Bruce
Harker from Morrisons in New Zealand advised Contact.
January 1998: AGL buys out Energy Initiatives, its 50 per cent
partner in Victorian electricity distributor Solaris, for $219 million,
giving it a 58 per cent profit on its equity as the original $950
million acquisition in 1996 was heavily geared.
March 1998: AMP and Utilicorp partially float United Energy raising
$390 million and confirming a 20 per cent plus profit on their initial
$1.553 billion purchase in August 1996. Float done by Deutsche Bank and
March 1998: Epic Energy, a consortium including American power
giants El Paso and Consolidated Natural Gas, along with AMP, NSW State
Super and Hastings, pay a ridiculous $2.47 billion for the
Dampier-to-Bunbury natural gas pipeline. Andrew Sutherland from JP
Morgan advised the WA Government and Alan James from Deutsche advised
the over-zealous buyers who went into receivership.
Mid-1998: BHP sold off the Port Hedland and Newman power stations in WA to Duke Energy.
November 1998: Citipower sold by New Orleans-based Entergy for $1.7
billion to fellow US utility AEP, booking a tiny profit. Peter Berry
from UBS advised Entergy and John Wylie and Andrew Leydon from CSFB got
a second crack at this asset for the buyers after selling it the first
time for the Kennett Government.
February 1999: Texas
Utilities buys the first of three Victoria gas retailers and
distributors, Westar/Kinetik, for $1.62 billion. Alan James from
Deutsche advised the Texans.
March 1999: American group Utilicorp and its local partner, AMP,
paid $1.97 billion to snare the second of Victoria’s gas retailers and
distributors, Miltinet/Ikon. Alan James from Deutsche was the Utilicorp
adviser as usual whilst Wylie and Leydon had the usual government brief.
Boral and Envestra buy the third Victorian gas distributor and
retailer, Strataus/Energy 21, for $1.67 billion which is now part of
the Boral spin-off Origin Energy. Macquarie Bank advised Boral/Envestra
thanks to the Tony Berg connection.
May 1999: Gasnet,
Victoria’s monopoly gas transmission business, sold to GPU for $1.025
billion in the last of the Kennett sales. Wylie and Leydon stood back
and let CSFB’s Kyle Mangini handle this sale.
Li Ka-Shing led Cheung Kong Infrastructure and Hong Kong Electric
Holdings pays $3.5 billion for ETSA transmission and distribution
assets. CKI/HKEK were advised by ABN Amro and Ray Spitzley from Morgan
Stanley advised the SA Government.
Energy Corporation (AEC) trading as Alliant Energy Australia (AEA)
progressively bought Southern Hydro and now owns each of the three
partner companies that form the Southern Hydro Partnership, having
bought the Contact Energy share in 1999 and the Infratil share in 2000.
January 2000: AGL pays $175 million to Hong Kong-based CKI for South Australian electricity retailer ETSA Power.
February 2000: Shell, United Energy (AMP and UtiliCorp) and
Woodside put retail gas and electricity assets into Pulse Energy with
Deutsche providing the advice.
February 2000: Boral demerges with its energy division Origin after advice from Macquarie Bank.
April 2000: United Energy spins off 34 per cent of telco division
Uecomm in a float at $1.90 a share but it quickly tanks and the $1
billion float valuation promoted by advisers Deutsche Bank becomes a
May 2000: Texas Utilities pays $295 million to the
South Australian government for a 100 year lease to operate the 1280mW
gas-fired Torrens Island power station. As usual, Ray Spitzley from
Morgan Stanley advised the SA Government and Citibank’s Chris Sadler
helped the Texans out.
June 2000: GPU booked a $450
million loss when it sold its electricity transmission business,
PowerNet Victoria, to Singapore Power for $2.1 billion. Sing Inc were
advised by Morgan Stanley’s Sheldon Trainor and Alan James from
Deutsche advised the seller.
July 2000: AGL spins off
its pipeline assets into the Australian Pipeline Trust with Catherine
Brenner from ABN AMRO the leader investment banker on the deal.
Utilicorp (now Aquila) and AMP pay $4.38 a share for a cornerstone
shareholding in WA gas utility Alinta Gas before it is floated by the
Court government at the knockdown price of $2.25 a share. Alan James
from Deutsche advised Utilicorp as usual.
China Light & Power progressively buys 92% of Yallourn power
station for $1.84 billion as PowerGen, Itochu, AMP, Hastings and NSW
State Super cop a $500 million loss. CLP advised by Bob Rawlinson from
JP Morgan and the sellers were helped by Dresdner and Richard Elmslie
November 2000: Queensland’s Powerlink, ABB and
Macquarie Bank form a consortium and pay $938 million for South
Australia’s electricity transmission company ElectraNet.
Scottish Power sells Powercor for $2.32 billion, barely more than its
1995 sale price, to the Hong Kong consortium Cheung Kong Infrastructure
Holdings and Hongkong Electric Holdings. Having got to know Powercor
when selling it, John Wylie and Andrew Leydon from CS First Boston
advised Scottish Power and Richard Wagner from ABN Amro advised the
Hong Kong duo.
April 2001: Origin Energy buys Powercor’s
582,000-customer retail business from Lia Ka Shing’s Hong Kong empire
for $137 million as part of the deal with Scottish Power.
The government-owned Tasmanian Hydro Electric Corporation hands 120mW
Bell Bay power station to Duke Energy for conversion to natural gas,
complete with a long term management contract.
Early 2002: Duke Energy opens a new small power station (43 MW) at Bairnsdale, Victoria, to supplement existing generation.
July 2002: AGL
buys Pulse for $880 million from Shell, Woodside and United Energy.
John Wylie and Andrew Leydon from Carnegie Wylie did the selling and JP
Morgan advised AGL.
July 2002: AEP sells CitiPower to Li
Ka-Shing led Cheung Kong Infrastructure and Hong Kong Electric Holdings
for $1.53 billion, booking a $US125 million loss mainly because the
Australian dollar was so low at the time. The retail assets were
on-sold to Origin Energy. AEP was advised by Richard Wagner from ABN
August 2002: US company Edison Mission and Kiwi
outfit Contact Energy open new $165 million, 300-megawatt Valley Power
peaking plant at Loy Yang B.
October 2002: The
Murraylink transmission line between Victoria and SA was commenced – a
development by a partnership of Hydro Quebec and SNC Lavalin.
US utility AES sells its Mt Stuart power station in Queensland to
Origin Energy for $93 million and its two Victorian gas-fired plants at
Newport and Jeeralang to a consortium Babcock & Brown and Prime
Infrastructure Group, for $202 million. However, AES booked a 40 per
cent profit from the $104 million in equity it collected from the two
deals, making it a rare winner.
December 2002: Western Power broken up and NRG walks away from Flinders Power.
January 2003: $1.5 billion Millmerran power station in Queensland
on 31 January 2003. The 840mW station is the largest “greenfield”
private investment in electricity generation in Australia (as opposed
to purchasing an existing facility from a government utility). It was
built by a InterGen/Shell-Bechtel joint venture and is owned by a
partnership made up of InterGen, Marubeni, GE Capital, Tohoku Electric
March 2003: Alliant Energy sells Southern Hydro
to government-owned Kiwi utility Meridian for $550 million which was
close to what they paid in 1999 and 2000 to another Kiwi company
Contact Energy and utility company Infratil.
UtiliCorp (now Aquila) pockets $980 million selling its Victoria and WA
electricity and gas assets to AMP and Perth-based Alinta Gas. Having
brought UtiliCorp in, Alan James (now at Citibank) advised on the sale
while Richard Elmslie at UBS advised AMP and Macquarie advised Alinta.
July 2003: The
giant Loy Yang A power station in Victoria conditionally sold by
CMS-NRG-Horizon for $3.5 billion to a consortium including AGL, Tokyo
Electric and the Commonwealth Bank for $3.5 billion, crystallising a
$1.4 billion loss in just 6 years. The deal was finally approved and
completed in April 2004. Jeremy Kirkwood from Morgan Stanley (Alan
Stockdale’s former chief of staff) advised CMS-NRG and JP Morgan
advised the AGL consortium.
March 2004: Alinta paid $1.69
billion for US company Duke Energy’s gas pipeline and power plants in
Australia and New Zealand. Macquarie Bank advised Alinta and JP
Morgan’s David Dipilla helped out Duke.
Westpac-controlled Hastings Funds Management pays $663 million for a
portfolio of gas pipelines from troubled Epic Energy which
simultaneously toys with receivership after failing to sell its main WA
asset. John Wylie and Andrew Leydon from Carnegie Wylie advsied Epic
whilst Westpac and Hastings didn’t need external advice as it was a
related party transaction.
April 2004: Singapore Power
buys TXU’s Australian business for $5.1 billion, booking a $513 million
profit although the business repatriated no dividends back to Texas
during its eight year operation. CSFB’s Nick Schiffer advised the
Texans and Sheldon Trainor from Morgan Stanley advised the Singaporeans.
July 2004: Origin Energy bids $2.5 billion for Contact Energy, New
Zealand’s largest listed power generator, but only ended up with 51 per
cent for a cost of about $1.5 billion.
July 2004: Prime Infrastructure Group paid $442 million for a 53.7%
share of Powerco Ltd, the country’s second-largest energy networks
company, giving it an enterprise value of $1.7 billion.
September 2004: Alinta, Alcoa and the recently listed Diversified
Utilities Energy Trust, backed by Macquarie Bank and AMP Capital, are
set to buy the Dampier to Bunbury Natural Gas Pipeline – Australia’s
biggest gas transmission system – in a deal that pays out the $1.85
billion bank debt owed by Epic Energy.
March 2005: Singapore Power sells the Victorian retail and
generation assets formerly owned by TXU to China Light and Power for
$2.2 billion. JP Morgan advised CLP.
April 2005: Spanish
conglomerate Acciona bids $870 million for renewable energy company
Pacific Hydro, but is then trumped by Gary Weaven and a group of
industry funds which held a 30% stake and paid $5 a share for the rest.
Carnegie Wylie advised Pacific Hydro, Citigroup advised the Spanish and Craig Jensz from Gresham advised IFM.
October 2005: $700 million raised in the public float of Alinta Infrastructure.
November 2005: AGL to pay $1.5 billion for Southern Hydro’s renewable business of 737mW of power across Victoria, NSW and South Australia.
November 2005: Hong Kong conglomerate CKI to float 50% of
Victorian and South Australian electricity distribution businesses in a
$1.5 billion-plus raising through a float of Spark Infrastructure.
November 2005: Singapore Power raises $1.3 billion
though the sale of 49% of its largely Victorian gas and electricity
assets in a partial float of a business called SP Ausnet.
December 2005: Ergon Energy announce a $103 milliion merger with Victorian
based power retailer Australilan Energy Limited, trading as Powerdirect.
December 2005: NSW government announces plans to float its 58% stake in the Snowy Mountains Hydro-Electric scheme.
February 2006: AGL releases information memorandum for demerger to create separate energy and infrastructure companies.
February 2006: NSW and the Commonwealth come on board so 100% of Snowy will be floated by June this year.
February 2006: Origin unveils complex dual listed company structure to mop up the rest of New Zealand subsidiary Contact Energy.
February 2006: AlintaGas splashes more than $1.2 billion
building a blocking stake in AGL and then proposes its own merger and
then separation to create an energy and infrastructure arm.
If we’ve missed anything, please email the details to smayne
@crikey.com.au. And while you’re at it, send us through some good power