Singapore Power International (SPI) has agreed with SGID, a subsidiary of State Grid Corporation of China (SGCC), on the sale of stakes in Australian power and gas distribution companies. Under the agreements, SGID will purchase a 60% shareholding in SPI Australia Assets ("SPIAA") as well as a 19.9% stake in SP AusNet.
SPIAA is a fully-owned company that mainly owns and maintains electricity distribution, gas distribution and transmission assets, including an electricity distribution network serving over 300,000 customers in north-west Melbourne, Victoria and a gas distribution network serving over 1 million customers in Sydney, New South Wales. SP AusNet is the largest diversified energy network business in Victoria, owning and operating more than US$10bn of electricity and gas distribution assets, including the state-wide electricity transmission network.
The acquisitions are subject to government and regulatory approvals in China and Australia. In November 2012, China State Grid acquired a 41.1% interest in ElectraNet, the operator of the main transmission network in South Australia; the company already has operations in Brazil, the Philippines and Portugal.
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