Chow Tai Fook to buy Australia's Alinta from TPG

The private equity firm acquired Alinta as part of a consortium in 2011, investing A$2.1 billion ($1.6 billion) in a debt-for-equity deal that followed a restructuring effort aimed at keeping the company from going into administration. The Australian reported that TPG currently holds a 20-30% stake in the company and realized a sale worth A$4 billion to CTFE.

The transaction follows a protracted effort to list the company in Australia, including two IPO delays attributed in part to market uncertainty related to the US elections. The company was said to be targeting a raise of about A$2 billion at a valuation of A$3 billion.

It marks TPG’s second Australian exit in four months. In November the firm reduced its stake in poultry producer Ingham’s Enterprises from 90% to 47% as part of a A$596 million IPO.  

Alinta is one of Australia’s largest power companies with an owned and contracted generation portfolio of nearly 2,000 megawatts and about 800,000 combined electricity and gas retail customers. Operations extend across Australia and New Zealand.

Sale of the company requires a foreign investment approval from the Australian government, which is currently in process, according to a statement. Alinta will retain its current leadership and management, including CEO Jeff Dimery.

The deal represents CTFE’s first entry into the Australian energy space after having made a number of real estate acquisitions in the country. The investor – best known as Hong Kong’s largest jewelry retailer – normally targets property, transportation, communications and tourism-related assets.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Industrials
• Exits
• Trade sale
• Hong Kong (China)
• Australia
• TPG Capital
• energy