Alinta has revealed that a successful sale would reap $155 million for its 335 million shares in the junior telco along with the rights under a loan facility from Alinta to Uecomm, and the rights under a guarantee facility provided by Alinta to ANZ Banking Group.

Optus has also agreed to make an off-market takeover offer to acquire all of the ordinary shares in Uecomm, the full details of which should be released within 21 days from today.

Alinta acquired its 66% interest in Uecomm as part of a portfolio of assets from United Energy in July 2003 and indicated at the time that it did not see itself as a natural long-term major shareholder of the company.

“The proposed transaction is advantageous to all parties involved. It allows Alinta to focus on its core business of operating and managing energy infrastructure assets, while providing Uecomm with a strong platform for the next stage of its development,” said Alinta chief executive officer Bob Browning.

Alinta secured the price after an improved financial performance from Uecomm related to a turnaround in revenue forecasts after several lean years. Uecomm has now predicted revenue of between $70 -$80 million for 2004 after recording a 29% jump in first quarter earnings.

In March the market had expected the energy utility to increase its cash reserves with a $110 million auction of its interest in Uecomm via an institutional bookbuild.

However, Browning said at the time there was no shareholder benefit in a sale for the reduced prices on offer.

"Alinta's primary objective is to build value for our shareholders. We believe that the price offered under the bookbuild process was not sufficient to reflect the inherent value of Uecomm and its strategic importance in the telecommunications sector."

Profits from the sale are expected to be used in debt reduction following Alinta’s successful acquisition of Duke Energy’s Australian assets in March.