APA Group, a leading Australian energy infrastructure company, reveals it has gone into documents to potentially acquire Basslink Pty Ltd.
In a statement, APA Group added it has negotiated documentation with Hydro Tasmania and the State of Tasmania regarding Basslink’s ongoing operations.
The acquisition is subject to a number of conditions precedent, including acceptance of the deed of company arrangement proposed by APA Group at Basslink’s second meeting of creditors on Tuesday, 18 October. According to the proposal, APA Group will pay $773 million to acquire Basslink. APA Group said these revenues would be used to repay Basslink creditors, including APA Group’s existing $648 million senior secured debt. Following the second meeting with Basslink’s creditors, a further report will be provided.
In March 2022, APA Group purchased 100 per cent of the senior secured bank debt of Nexus Australia Management Pty Ltd, Basslink’s borrowing entity, at a discount to face value and has been engaged in a receiver-led process for the sale, reorganisation, or recapitalisation of Basslink’s business. The full amount of APA Group’s debt and interest incurred will be repaid as part of the transaction by being set off against the acquisition price.
