The foundation of the new company is the existing construction and maintenance division of AlintaGas Networks, which has transferred over to the venture. As part of the transaction, NPS (WA) had already been awarded the construction and maintenance contract for AlintaGas for a four year period.
Under the contract, NPS (WA) will maintain and add to the existing AlintaGas network. The other 50 per cent shareholder in the venture is Melbourne-based National Power Services Pty Ltd, a wholly owned subsidiary of United Energy Limited.
The new venture partners have estimated first full year revenue for NPS (WA) at approximately $40 million, with a target of growing revenue between 50 and 70 per cent within the next four years.
The Chief Executive Officer of NPS (WA) will be Andy Wood, the former CEO of the MG Kailis Pearling Division. Mr Wood was previously a senior executive with Optus in Queensland and AGL in New South Wales. The board of NPS (WA) will comprise two representatives each from AlintaGas and NPS, along with two independent directors, Freehills partner Mr Barry Johnston and Gaye McMath, director of finance and chief financial officer of Murdoch University.
News of the launch failed to get a positive reaction from the market. AlintaGas stock fell seven cents to $3.60 after the unveiling of NPS.
