Singapore Power and Babcock to buy Australia''s Alinta for A$7.4 billion

31 March 2007

Mumbai: Singapore Power Ltd. and Babcock & Brown Ltd. have agreed to buy Alinta Ltd., Australia's biggest gas pipelines and electricity networks, for A$7.4 billion ($6 billion) in a cash and stock offer.

The offer of A$15 a share is six per cent above Alinta's last closing price, Perth-based Alinta said in a statement. Singapore Power and Babcock, Australia's second-biggest investment bank, overbid rival Macquarie Bank Ltd.

Under the Singapore Power and Babcock & Brown proposal, Alinta shareholders will get A$8.50 in cash for each Alinta share, plus 7.83 shares in Babcock & Brown Infrastructure Group, 3.31 shares in Babcock & Brown Power and 1.3 shares in Babcock & Brown Wind Partners for every five Alinta shares. They'll also get 1.51 shares in Australian Pipeline Trust for every five Alinta shares.

The companies will also assume A$6.5 billion in debt.

Singapore Power will pay most of the cash part of the offer, a spokeswoman said , adding it will fund the bid from its cash and bank loans.

She declined to comment on the overall split of the A$13.9 billion purchase, including debt, between the bidding partners.