Alinta
Encyclopedia
Alinta is an Australian energy infrastructure company. It has grown from a small, Western Australia
based gas distributor and retailer to the largest energy infrastructure company in Australia. It was bought in 2007 by a consortium including Singapore Power
and various now defunct Babcock & Brown funds. As of 2010 its largest share holder was Merrill Lynch
, but it is currently undergoing restructuring.
tribe from Victoria.
It was formed as AlintaGas in January 1995 when the vertical monopolist energy supplier, the State Energy Commission of Western Australia
, was disaggregated into separate gas and electricity corporations. On 13 July 2000 legislation was passed by the Government of Western Australia
for the sale of AlintaGas which subsequently listed on the Australian Stock Exchange
(ASX) on 17 October 2000.
On 8 May 2003 AlintaGas Ltd officially changed its name to Alinta Limited.
On 23 July 2003 through a series of complicated transactions involving Alinta, Aquila Inc, United Energy, and AMP Henderson Global, Alinta became the operator, manager and part owner of regulated energy assets in Western Australia and Victoria
.
In April 2004 Alinta acquired Duke Energy
International's assets in Australia and New Zealand. In October 2004 a DUET/Alinta/Alcoa
Consortium acquired the Dampier to Bunbury Natural Gas Pipeline
from Epic Energy.
On 4 October 2005 Alinta publicly floated the pipelines and power stations it acquired from Duke Energy
International into a separate investment vehicle, Alinta Infrastructure Holdings (AIH) which also traded on the ASX. In October 2006 Alinta, through Alinta IH Pty Ltd (Alinta IHPL), made an offer to buy out the 80% of the shareholding in AIH that it did not already own. By 11 January 2007 Alinta had acquired 91.4%, and moved to compulsorily acquire the remainder.
Alinta acquired infrastructure assets and the Agility business from AGL
through a combination of merger and demerger transactions on 25 October 2006.
On 9 January 2007 Alinta announced that senior executives and the Chairman were working on a Management buyout
proposal, with Macquarie Bank as their advisor. As a result, the chief executive officer
Bob Browning resigned on 11 January 2007, and the company was clearly for sale to the highest bidder.
The company was eventually acquired by a consortium between Australia's second-largest investment bank, Babcock & Brown, and Singapore Power
, the largest utility company in the city-state
. after putting up a bid of A$13.9 billion, beating out a rival bid by Macquarie Bank.
The Alinta Limited take over by a consortium comprising Singapore Power International (SPI), Babcock & Brown Infrastructure (BBI) and Babcock & Brown Power (BBP) was completed in late August 2007. Subsequently, Alinta Limited was delisted from the Australian Securities Exchange in September 2007. The company was split into the following businesses:
With the collapse of Babcock & Brown in 2009, the ownership is being restructured, which will be voted on in March 2011.
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
based gas distributor and retailer to the largest energy infrastructure company in Australia. It was bought in 2007 by a consortium including Singapore Power
Singapore Power
Singapore Power is a company which provides electricity and gas transmission, distribution services, and market support services to more than a million customers in Singapore. It is the only electricity company in Singapore, and is also one of the largest corporations in Singapore...
and various now defunct Babcock & Brown funds. As of 2010 its largest share holder was Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
, but it is currently undergoing restructuring.
History
The word Alinta is derived from the word for fire in a traditional language of an AboriginalIndigenous Australians
Indigenous Australians are the original inhabitants of the Australian continent and nearby islands. The Aboriginal Indigenous Australians migrated from the Indian continent around 75,000 to 100,000 years ago....
tribe from Victoria.
It was formed as AlintaGas in January 1995 when the vertical monopolist energy supplier, the State Energy Commission of Western Australia
State Energy Commission of Western Australia
The State Energy Commission of Western Australia was an Australian energy provider. It was established on 1 January 1975 as an amalgamation of the State Electricity Commission of Western Australia plus the Fuel and Power Commission.On 1 January 1995 it was split up into separate gas and...
, was disaggregated into separate gas and electricity corporations. On 13 July 2000 legislation was passed by the Government of Western Australia
Government of Western Australia
The formation of the Government of Western Australia is prescribed in its Constitution, which dates from 1890, although it has been amended many times since then...
for the sale of AlintaGas which subsequently listed on the Australian Stock Exchange
Australian Stock Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
(ASX) on 17 October 2000.
On 8 May 2003 AlintaGas Ltd officially changed its name to Alinta Limited.
On 23 July 2003 through a series of complicated transactions involving Alinta, Aquila Inc, United Energy, and AMP Henderson Global, Alinta became the operator, manager and part owner of regulated energy assets in Western Australia and Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
.
In April 2004 Alinta acquired Duke Energy
Duke Energy
Duke Energy , headquartered in Charlotte, North Carolina, is an energy company with assets in the United States, Canada and Latin America.-Overview:...
International's assets in Australia and New Zealand. In October 2004 a DUET/Alinta/Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...
Consortium acquired the Dampier to Bunbury Natural Gas Pipeline
Dampier to Bunbury Natural Gas Pipeline
The Dampier to Bunbury Natural Gas Pipeline is the longest natural gas pipeline in Australia. It is 660mm in diameter, which also makes it one of Australia's largest in terms of transmission capacity...
from Epic Energy.
On 4 October 2005 Alinta publicly floated the pipelines and power stations it acquired from Duke Energy
Duke Energy
Duke Energy , headquartered in Charlotte, North Carolina, is an energy company with assets in the United States, Canada and Latin America.-Overview:...
International into a separate investment vehicle, Alinta Infrastructure Holdings (AIH) which also traded on the ASX. In October 2006 Alinta, through Alinta IH Pty Ltd (Alinta IHPL), made an offer to buy out the 80% of the shareholding in AIH that it did not already own. By 11 January 2007 Alinta had acquired 91.4%, and moved to compulsorily acquire the remainder.
Alinta acquired infrastructure assets and the Agility business from AGL
Australian Gas Light Company
The Australian Gas Light Company was an Australian gas and electricity retailer. It was formed in Sydney in 1837, and supplied town gas for the first public lighting of a street lamp in Sydney in 1841 AGL was the second company to list on the Australian Stock Exchange. The company gradually...
through a combination of merger and demerger transactions on 25 October 2006.
On 9 January 2007 Alinta announced that senior executives and the Chairman were working on a Management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
proposal, with Macquarie Bank as their advisor. As a result, the chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
Bob Browning resigned on 11 January 2007, and the company was clearly for sale to the highest bidder.
The company was eventually acquired by a consortium between Australia's second-largest investment bank, Babcock & Brown, and Singapore Power
Singapore Power
Singapore Power is a company which provides electricity and gas transmission, distribution services, and market support services to more than a million customers in Singapore. It is the only electricity company in Singapore, and is also one of the largest corporations in Singapore...
, the largest utility company in the city-state
City-state
A city-state is an independent or autonomous entity whose territory consists of a city which is not administered as a part of another local government.-Historical city-states:...
. after putting up a bid of A$13.9 billion, beating out a rival bid by Macquarie Bank.
The Alinta Limited take over by a consortium comprising Singapore Power International (SPI), Babcock & Brown Infrastructure (BBI) and Babcock & Brown Power (BBP) was completed in late August 2007. Subsequently, Alinta Limited was delisted from the Australian Securities Exchange in September 2007. The company was split into the following businesses:
- Alinta, retaining the West Australian gas retail business
- WestNet Energy, which provides asset management, operational, construction and maintenance services to the owners of the AlintaGas Networks gas distribution system in Western Australia; and to the owners of the Dampier to Bunbury Natural Gas Pipeline. It is also a major contractor in overhead and underground electricity cabling.
- Alinta LGA, renamed to JemenaJemenaJemena is an Australian energy infrastructure company. It has grown from a small, Western Australia based gas distributor and retailer to the largest energy infrastructure company in Australia. It has become known for its aggressive approach to growth through acquisition and financial engineering...
on 4 August 2008, which manages energy infrastructure assets in the eastern states of Australia including Queensland and New South Wales gas pipelines and gas and electricity distribution networks in Victoria.
With the collapse of Babcock & Brown in 2009, the ownership is being restructured, which will be voted on in March 2011.