The Westpac-controlled Hastings Funds Management, an Epic shareholder, bought the so-called Epic Energy Rest assets for $663 million. This includes the Moomba-Adelaide pipeline, the South East (Katnook) pipeline, the South West Queensland pipeline and the Pilbara Pipeline System.
The assets are thought to have a book value of up to $900m, meaning Epic has taken at least a $200m loss.
Australian Pipeline Trust which was apparently the second placed bidder said it would be reviewing its legal position on the outcome.
It said it became aware of the Hastings interest in the assets only last month, seven weeks after the bidding process ended.
“We are disappointed at this outcome and we will be reviewing the legal position over the next several days,” APT’s managing director Jim McDonald was reported to have said.
The sale to APT and reportedly GasNet was in the final throes with a tag of $650 million when Hastings lobbed the $633m bid on the table.
ANZ Infrastructure Services was also reported to have been poring over the sale, with each bidder thought to have spent more than $5 million on the process.
The Hastings purchase will be fully funded by Westpac, with Epic’s managing director, David Williams, saying his company would still continue to operate the assets after the new owner had taken control.
