The assets include Origin Energy Asset Management (OEAM), which provides management and operations services to gas distribution and transmission company Envestra, a 17% stake in Envestra and a one-third interest in the SEA Gas pipeline.
OEAM also has a range of smaller complementary assets including natural gas vehicle stations, co-generation facilities and an interest in a service provider to the water industry.
APT said the $556.5 million purchase price of the assets would also be subject to transaction costs of $15.4 million.
The acquisition will initially be funded via acquisition bridge facilities, but APT said it is refinancing its debt facilities on “more favourable terms” than current debt.
The company said the deal would increase group revenue by 40%, boost cash available for distributions and investment and provide initial funding from a committed bridge facility.
Managing director Mick McCormack said the acquisition was a strong strategic fit because the assets and businesses acquired were principally involved in APT’s core business, gas distribution or transmission.
“Origin Energy Networks operates under long-term contracts and has highly predictable revenue and cashflow streams,” he said.
“This acquisition will increase our free cash flow, which in turn enhances our ability to deliver on our strategy to increase distributions by at least CPI annually.
“We now have significant operations in every Australian mainland state and territory.”
The SEA Gas pipeline will give APT access to South Australian gas markets, while Envestra will provide further geographical and asset type diversification.
APT said its full-year 2007 distribution guidance of 28c per unit is unchanged and completion of the transaction is expected in July.
Positive benefits from the buy will start in full-year 2008, the company claimed.
Origin chief executive Grant King said the sale would let Origin concentrate on building an integrated business in the contestable segments of the Australian and New Zealand energy markets.
