Pipeline giant APA Group has been named preferred bidder for the sale of the electricity inter-connector Basslink, following a hotly contested six-week auction for the 370 km underwater electricity cable which connects the TAS and VIC grids.
The Basslink power cable venture was placed in receivership after an earlier attempt to sell it to APA Group stalled in November of 2021.
The venture, which was owned by Singapore’s Keppel Infrastructure Trust, have been suffering due to an ongoing dispute with monopoly customer Hydro Tasmania.
APA Group has emerged as a potential buyer for Basslink, the latter having an overdue $643.8 million loan from a syndicate of banks through a related entity, Premier Finance Trust Australia.
In a statement released on the 7 September 2022, APA Group expressed that it is now in discussions to seek to agree a binding transaction. There is no certainty those discussions will lead to a binding transaction being agreed or implemented.
If a binding transaction is agreed with the Receivers, it is expected that APA will then submit a proposal to the Administrators to effect the acquisition of Basslink and its assets through deeds of company arrangement.
Contractual execution will only occur if APA’s proposal to the Administrators is approved by creditors at the second creditors’ meeting
The company said the timing of these events is uncertain and subject to change.
For more information, visit APA Group’s website.
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