Dutch pension fund APG buys Ausgrid stake for $2.2bn

Dutch pension fund APG has secured a stake in Ausgrid. Picture: iStock

APG has purchased a 16.8 per cent stake in the NSW electricity distributor Ausgrid for just over $2.2bn.

The Dutch pension fund fended off competition from Macquarie Infrastructure and Real Assets and Ontario Teachers’ Pension Plan to buy the interest.

Working for APG was Credit Suisse.

It comes amid a closely fought out auction where final bids were due last Friday.

MIRA and Ontario Teachers’ were among the other final parties in the mix.

The deal was signed on Wednesday night and values Ausgrid at $25bn including debt.

As part of the transaction, APG will secure all of Ausgrid’s smart metering business ES, which has a higher valuation that the bulk of Ausgrid’s business consisting of poles and wires assets.

The regulated asset base of half of Ausgrid is about $16bn.

AustralianSuper placed the stake up for sale earlier this year through Jefferies Australia and Barrenjoey Capital Partners.

Australia’s largest superannuation fund is expected to use the proceeds in its quest to buy the MIRA-owned Axicom telecommunication tower business, for which first round bids are due next week.

AustralianSuper earlier purchased a 70 per cent interest in the Optus telecommunication tower portfolio for $1.7bn and is considered the frontrunner to buy Axicom.

Also competing is said to be American Towers, Cellnex and Canadian pension fund Omers, with price expectations at more than $3bn.

The NSW government sold a 99-year lease for half of Ausgrid to AustralianSuper and IFM, the largest manager of infrastructure assets, for $16bn in 2016.

The deal will no doubt bode well for PEP which is selling a half share in its Intellihub smart metering business, with a select group of suitors lobbing final bids last week, including MIRA, BlackRock, Morrison & Co and Stonepeak Infrastructure Partners.

Working on that process is Barrenjoey Capital Partners and Credit Suisse.