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Global Infrastructure acquires Equis in US$5b cash deal

GLOBAL Infrastructure Partners (GIP) has acquired independent power producer Equis Energy for US$5 billion in cash, including assumed liabilities of US$1.3 billion.

GIP, an independent infrastructure fund manager, made the deal in conjunction with the Public Sector Pension Investment Board - one of Canada's largest pension investment managers, CIC Capital Corporation, and a group of other co-investors.

Singapore-based Equis in August asked for binding bids for its US$4 billion renewable energy business. Run by former Macquarie Group Ltd executives, the company pursued a sale after delaying plans for an initial public offering of its operational assets, people with knowledge of the matter said in March.

In a joint media release, the two companies said that the deal, expected to close in first-quarter 2018, "positions GIP as a dominant renewable energy developer in the key OECD (Organisation for Economic Co-operation and Development) growth markets of Australia and Japan".

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David Russell, CEO of Equis and chairman of Equis Energy, said: "The investment by GIP and its partners is exciting news for the development of renewable energy in the Asia-Pacific. GIP has a strong track record of managing and growing utility-scale infrastructure businesses, and the combination of experience and knowledge across GIP and the existing management team will allow Equis Energy to continue expanding competitively across its target markets."

Adebayo Ogunlesi, chairman and managing partner of GIP, characterised Equis as a "strong fit" with GIP's global renewable investment strategy.

Equis's installed capacity in the Asia-Pacific region comprises of 11,135 MW across 180 assets in Australia, Japan, India, Indonesia, the Philippines and Thailand, according to the company.

Credit Suisse (Singapore) Limited and JP Morgan (SEA) Limited acted as financial advisers to Equis Energy.