Pacific Energy to be acquired by Queensland Investment Corporation

Australian power generation company Pacific Energy has announced it is to be acquired by the Queensland Investment Corporation (QIC).

The total involved is AU$422mn, with shareholders receiving $0.975 per share in cash, a 35.4% premium on the last closing price on 22 July.

Pacific Energy CEO and Managing Director James Cullen said: “We are delighted that QIC has chosen Pacific Energy as its platform for growth in our existing markets and beyond. We look forward to continuing to deliver reliable, best-in-class power solutions for our customers under the ownership of QIC and leveraging our high standards, quality and culture with the support of QIC to expand our reach to new markets.”

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Pacific Energy will retain its existing leadership and subsidiaries such as Kalgoorlie Power Systems. The company’s directors have unanimously recommended shareholders vote for the scheme in a meeting expected to be held on 14 October, with the deal expected to close in November.

Pacific Energy Chairman, Cliff Lawrenson, said: “The Board of Pacific Energy considers the proposal from QIC represents an opportunity for shareholders to realise compelling and certain value for Pacific Energy shares. The proposal delivers a significant premium for shareholders and recognises the position Pacific Energy has built as the leading Build-Own-Operate power supplier to the mining industry and remote townships in Western Australia as well as the emerging opportunities from our growing east coast presence through Pacific Energy Victorian Hydro and NovaPower.”