30 June 2005
Key Points:
Clayton Utz has played a key role in what is likely to be the largest energy sector deal Asia will see this year - China Light & Power's A$2.2 billion acquisition of the Australian merchant energy business of Singapore Power International.
A multidisciplinary team from Clayton Utz represented the senior debt providers to China Light & Power - National Australia Bank, Commonwealth Bank of Australia and JP Morgan Chase Bank, N.A. - on the deal, which involved the acquisition of electricity generating facilities in South Australia, various gas storage facilities, and electricity and gas retail operations on the Eastern seaboard.
The transaction also involved the refinancing of Yallourn Energy, Victoria's second largest base load coal-fired electricity generator. As a result of the deal, China Light & Power is now the second largest foreign investor in Australia's power sector, with around A$5 billion in Australian assets. The deal closed at the end of May.
Clayton Utz banking and finance partner Quentin Solomon led the firm's Melbourne team, which included special counsel Tricia Moloney, senior associate Rebecca Hope, solicitors Catherine Stuart and Joseph Varghese and articled clerk Elliot Raleigh.
In Sydney, corporate partner Simon Truskett together with senior associate Faith Taylor and solicitor Alecia Braven from the firm's energy practice, ensured that the due diligence and sale arrangements were in order. Also in Sydney, Louise McCoach lead the derivatives team.
Clayton Utz banking and finance head Grant Fuzi praised the collaborative efforts of the firm's cross-office teams on the deal, recalling the firm's involvement in advising the financiers on the A$1.9 billion sale of the Epic Energy Dampier to Bunbury Natural Gas Pipeline, one of 2004's biggest deals.
"The China Light & Power transaction was particularly difficult as a result of the separation of Singapore Power's generating and retail businesses from its remaining distribution businesses, so it was particularly pleasing to close on time and without unresolved issues," Mr Fuzi said. "A number of late nights and long days from the team enabled this."
