Author Topic: China State Grid confirms investment in South Australian operator ElectraNet  (Read 1080 times)


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China State Grid confirms ElectraNet investment
Angela Macdonald-Smith
Senior resources writer
Updated Nov 30, 2012 – 7.29am,
first published at Nov 29, 2012 – 1.17pm

China’s State Grid Corporation has confirmed it will buy into South Australian power transmission operator ElectraNet in the first foray into the local market by the world’s largest utility.

As reported in The Australian Financial Review, the grid giant, which services over 1 billion customers in China, will pay $500 million to buy the 41.1 per cent stake in ElectraNet held by Queensland network owner Powerlink.

The international division of State Grid, which has acquired assets in the Philippines, Brazil and Portugal in recent years, regards itself as a “long-term strategic partner" in ElectraNet, said Sun Jinping, chief investment director.

The value of the deal is expected to be about $500 million, making it the largest investment by a Chinese state-owned company in Australia’s electricity industry. Photo: James Alcock

“State Grid Corporation of China is committed to working together with ElectraNet’s other shareholders to ensure that it continues to provide safe, secure and sustainable energy in South Australia," Mr Sun said.

Powerlink chairman Stephen Rochester said the board decided to sell out of ElectraNet “based on achieving a fair market price".

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