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AusNet Services buys Mortlake Terminal Station for A$110m
AUSNET Services has agreed to buy Mortlake Terminal Station in Western Victoria, Australia from Origin Energy for A$110 million (S$108.9 million).
Including the estimated stamp duty, the acquisition of the terminal station, which connects Origin's Mortlake Power Station to Victoria's electricity market, amounts to A$116.5 million.
AusNet Services, which is listed on both the Australian Securities Exchange and Singapore Exchange, said the acquisition is "closely aligned" to its core operations. The terminal station facilitates the export of electricity generated at Origin's gas-fired Mortlake Power Station into Victoria's electricity transmission network, owned by AusNet Services.
"In addition, AusNet Services has operated and maintained the terminal station on behalf of Origin since its commissioning in 2011," AusNet Services said.
Under the terms of the agreement, AusNet Services receives long-term fixed entitlements, which are expected to increase the group's cash inflows by A$8.8 million in FY2018, being the first full-year contribution.
AusNet Services will use existing corporate debt facilities to fund the acquisition. The group reaffirmed dividend guidance of 8.53 Australian cents per share for FY2016.