Australian funds snap up Ausgrid
Australia’s biggest electricity grid Ausgrid has been sold to local pension funds for $ 12.5 billion, a deal sources say consists largely of debt and is much cheaper than bids from China that were blocked on security concerns.
The country’s top two pension funds, IFM Investors and AustralianSuper, lodged the unsolicited bid for 50.4 percent of Ausgrid in the state of New South Wales in September.
The deal, which the bidders have emphasized as “allAustralian,” may cool a backlash over foreign asset ownership, media reports said.
In August, final bids from State Grid Corp of China and Hong Kong- listed Cheung Kong Infrastructure Holdings were blocked by the federal treasurer on unspecified security grounds, leading to a complaint from China.