Chinese firm acquires SP AusNet's stake

UTILITIES group Singapore Power has formally concluded its $7.5 billion sell-down of Australian assets to the giant State Grid Corporation of China.

UTILITIES group Singapore Power has affirmed its long-term commitment to the Australian market after formally concluding its $7.5 billion sell-down of Australian assets to the giant State Grid Corporation of China.

The sale of a 19.9 per cent interest in Australian-listed SP AusNet and a 60 per cent stake in the privately held Jemena business to State Grid was officially completed yesterday, eight months after the transaction was originally announced.

Singapore Power will continue to hold a 31.1 per cent interest in SP AusNet and a 40 per cent stake in Jemena.

Singapore Power chief executive Wong Kim Yin said Australia would continue to be a strategic focus for the company.

"I am confident that with the strong support from (State Grid and Singapore Power), the Australian businesses will be well-positioned for further opportunity and growth," Mr Wong said.

"This outcome has also affirmed Australia's strong support for businesses and foreign investments."

Treasurer Joe Hockey approved the transaction just before Christmas, clearing the path to completion.

The sale of the interests represented the biggest deal in Australia last year.

State Grid said in a statement it did not plan to make significant changes to the operational and managerial model at Jemena.

"For management and employees, it will be business as usual," the company said.

"With regard to its investment in SP Ausnet, (State Grid) sees this as a commercially attractive portfolio investment and looks forward to sharing in the company's future success."

State Grid is ranked by Fortune magazine as the world's seventh-largest company, boasting more than 1.5 million employees and $US260bn ($290bn) in revenues annually.

State Grid has been touted as a potential bidder for any of the electricity businesses set to be put up for sale in the near term by the NSW and Queensland governments.