Commonwealth Bank sells its stake in Loy Yang A
31 July 2006
The Commonwealth Bank today announced that it has sold its 15.2% interest in the Loy Yang A (LYA) power station and mine to Transfield Services (9.32%), and three superannuation funds (MTAA Super 1.52%, Statewide Superannuation Trust 2.50% and Westscheme 1.83%). Both MTAA Super and Westscheme are existing shareholders in LYA.
The Bank’s interests in LYA consisted of a 15.2% holding in Great Energy Alliance Company (GEAC), which owns the power station and mine and 22.5% of Loy Yang Marketing Holdings Pty Ltd, which performs the energy dispatch and trading functions for LYA. The total sale consideration received by the Bank was $179.8m.
The Commonwealth Bank was instrumental in the formation of GEAC along with AGL, the Tokyo Electric Power Company and several institutional investors. The Bank acted as sponsor and joint financial adviser to the consortium in its April 2004 acquisition of LYA.
Geoff Meulman, General Manager Infrastructure and Utilities Solutions Group, in congratulating the purchasers on their acquisition said, "We are delighted that the purchasers of the Bank’s holdings have demonstrated strong industry credentials and commitment to this important infrastructure asset."
He said that the Bank believes that LYA made substantial progress in the past two years under reinvigorated ownership, benefiting from the November 2005 refinancing of its $2.1 billion in senior bank debt facilities.
"This transaction continues our successful infrastructure strategy as we further our infrastructure activities both in Australia and overseas. By combining the Bank’s industry expertise with our full range of financial products and access to capital markets, we are able to create superior results for all participants," Mr Meulman said.
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