Australian electricity network owner Spark Infrastructure has accepted a $5.2 billion takeover bid from a North American consortium led by private equity giant Kohlberg Kravis Roberts & Co. On Monday, Spark Infrastructure announced the finalisation of its takeover by a North American consortium, comprised of Kohlberg Kravis Roberts & Co, Ontario Teachers’ Pension Plan Board, and the Public Sector Pension Investment Board. It was the consortium’s third buyout offer and valued Spark at $5.2 billion, after initially bidding just half that.
In an Australian Stock Exchange announcement, Spark confirmed it had accepted the offer, entering into a binding agreement with the consortium, which has completed its due diligence. Spark Infrastructure owns a 49% stake in the Victorian distribution operators Powercor and CitiPower, 49% of South Australia’s distribution network operator SA Power Networks, and a 15% stake in transmission network operator Transgrid in New South Wales.
Until recently, Spark was exclusively an investor in regulated network infrastructure but it has begun developing a portfolio of wind, solar and storage assets, targeting more than $1 billion of investment in renewable energy generation by 2025.
