Alinta’s shareholders approve TPG consortium’s bid
The shareholders of distressed Australian power giant Alinta Energy have approved an acquisition offer by a TPG-led consortium to acquire the company and delist it from the ASX, despite many of these backers making a 90% loss on their original funding.
According to local reports, the deal comes two years after negotiations between Alinta and acquisition suitors began, with a syndicate led by TPG winning the asset after offering a A$2.1 billion ($2 billion) debt-for-equity deal. The transaction will give the group control for just A$0.10 a share, but enables Alinta to avoid administration.
Alinta CEO Ross Rolfe reportedly said during the board meeting that the company had tried extensive measures to either sell or refinance its loans, but Alinta's A$169 million ($168 million) worth of debt, due in July, was more than suitors were able to surmount. According to The Sydney Morning Herald, of the more than 326 million votes cast, 96.8% of Alinta's backers supported TPG's deal.
In September, news surfaced that Alinta reached agreement with the TPG Capital-led consortium of its creditors, also including Oaktree Capital and Anchorage Advisers, to sell the majority of its assets, though its chief backers had yet to vote on the deal. The Australian notes that this deal is the second largest debt-for-equity swap in the country, following the A$3.3 billion deal for zinc miner Pasminco in 2001.
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