The company won the bidding war for the US group's Australian assets with a $1.69 billion offer before transaction costs, with completion of the sales process scheduled to occur in late April.
"This acquisition secures a quality portfolio of energy infrastructure assets, offering both a stable and secure earnings stream and strong volume growth potential, particularly from the pipeline assets on Australia's east coast." Alinta CEO Bob Browning said.
The portfolio of assets which Alinta has agreed to acquire from Duke comprises the Port Hedland and Newman gas-fired power stations and a stake in the Goldfields Gas Pipeline; the Queensland Gas Pipeline, the Eastern Gas Pipeline, the Tasmanian Gas Pipeline, and the Bairnsdale gas-fired power station; and the Glenbrook co-generation power station in New Zealand.
Funding for the acquisition will be raised via a combination of a $200 million share placement to institutions, a $468 million rights issue and a $1.18 billion increase in debt facilities and utilisation of internal cash resources to fund the balance.
As part of the rights issue, shareholders will be offered the chance to buy three shares for every seven they own for $5.50 each, which is well below Friday's closing price of $7.66.
Last month Alinta withdrew from the Epic Energy sales process, which included the troubled Dampier to Bunbury Natural Gas Pipeline, claiming a lack of access to due diligence information, although the Duke assets may have appeared to be a more financially sound target for a cheaper price.
