SPARK INFRASTRUCTURE RECEIVES CONDITIONAL AND NON-BINDING INDICATIVE PROPOSAL

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    In response to market speculation and the trading halt in its securities, Spark Infrastructure RE Limited
    (ACN 114 940 984) (in its capacity as responsible entity of Spark Infrastructure Trust (ARSN 116 870
    725)) (“Spark Infrastructure”) advises that it recently received a conditional and non-binding indicative
    proposal (the “Proposal”) from Ontario Teachers' Pension Plan Board (“OTPP”) and Kohlberg Kravis
    Roberts & Co. L.P. (“KKR”), on behalf of certain of its affiliated infrastructure investment funds, vehicles
    and entities managed and/or advised by it or its affiliates (the “KKR Funds”), together the Consortium
    (the “Consortium”).
    Under the initial Proposal, the Consortium would acquire all of the ordinary stapled securities in Spark
    Infrastructure by way of a scheme for all cash consideration of A$2.70 per stapled security, to be
    reduced to the extent that Spark Infrastructure pays or declares a distribution to its securityholders
    prior to the implementation of the proposed transaction. Following the announcement of Spark
    Infrastructure’s 1H2021 distribution of A$0.0625 per stapled security on 1 July 2021, the implied
    consideration under the initial Proposal is A$2.6375 per stapled security.1
    Following careful consideration, and consultation with its advisers, the Board of Spark Infrastructure,
    unanimously concluded that the price undervalued Spark Infrastructure, and was not at a level at which
    Spark Infrastructure was prepared to grant access to due diligence.
    Spark Infrastructure then received a revised proposal (“Revised Proposal”) from the Consortium, on
    the same basis as the initial Proposal, for an all cash consideration of A$2.80 per stapled security, to
    be reduced to the extent that Spark Infrastructure pays or declares a distribution to its securityholders
    prior to the implementation of the proposed transaction. Following the announcement of Spark
    Infrastructure’s 1H2021 distribution of A$0.0625 per stapled security on 1 July 2021, the implied
    consideration under the Revised Proposal is A$2.7375 per stapled security.2
    The Revised Proposal is subject to a number of pre-conditions including due diligence, Foreign
    Investment Review Board approval, a unanimous recommendation by the Spark Infrastructure Board
    and approval of the OTPP Investment Committee and Board and the KKR Infrastructure Investment
    Committee.
    Following careful consideration, and consultation with its advisers, the Board of Spark Infrastructure
    again unanimously concluded that the price undervalued Spark Infrastructure. Whilst not granting
    access to due diligence, in order to be constructive, the Board of Spark Infrastructure informed the
    Consortium that it was prepared to provide limited information on Spark Infrastructure’s business and
    its prospects. This engagement, which has not yet occurred, is conditional on the signing of a
    Confidentiality Agreement.
    The Board notes that there is no certainty that the engagement between Spark Infrastructure and the
    Consortium will result in a further revised proposal from the Consortium.
    1 To the extent any further distribution is paid or declared prior to implementation of any proposed transaction, the implied consideration under the initial
    Proposal would be further reduced for this amount. 2 To the extent any further distribution is paid or declared prior to implementation of any proposed transaction, the implied consideration under the
    Revised Proposal would be further reduced for this amount.
    The Board is focused on maximising securityholder value and will carefully consider any proposal that
    is consistent with this objective.
    Irrespective of whether the engagement between Spark Infrastructure and the Consortium results in
    further revised proposals, the Board considers that Spark Infrastructure has a highly attractive future
    and is well positioned to continue to deliver an attractive yield now with franking credits coupled with
    strong growth in its underlying high quality asset base, and has strong ESG credentials given its
    important role in supporting the multi-decade energy transition to a lower carbon future.
    Spark Infrastructure is being advised by Goldman Sachs and Herbert Smith Freehills.
    Spark Infrastructure makes this statement, and will continue to keep the market informed, in
    accordance with its continuous disclosure obligations. In the interim, securityholders do not need to
    take any action in relation to the proposals received by Spark Infrastructure from the Consortium.
    This announcement is authorised for release by the Board of Directors of Spark Infrastructure.

    courtesy of Bell Direct
    ====================================================================================================

    DYOR

    i hold SKI

    i bought into SKI in October 2011 @ $1.20 and added some more in a SPP later

    this would crystallize a profit , but i think i would rather keep holding the shares

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    UPDATE 2-Australia's Spark Infra snubs $3.7 bln bid, but leaves door open for engagement

    https://www.belldirect.com.au/Community/Forum/ForumPosts.html?ID=46352

    DYOR

    i hold SKI

  3. 78.6k
    Posts

    KKR and Ontario Teachers’ Boost Takeover Offer for Australian Energy Firm

    https://au.finance.yahoo.com/news/kkr-ontario-teachers-boost-takeover-233444757.html

    DYOR

    i hold SKI and would rather stay than sell

    where is FIRB on this after all they DO have contracts to help roll out the NBN

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    if this deals goes through i will be left with one Oz power company ( AST ) and 4 NZ ones because the NZ government OWNS major interests not sells out their country

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    SPARK INFRASTRUCTURE ENTERS INTO SCHEME IMPLEMENTATION DEED WITH CONSORTIUM OF KKR, ONTARIO TEACHERS’ AND PSP INVESTMENTS

    Highlights • Spark Infrastructure has agreed terms of a binding offer (“the Offer”) from KKR, Ontario Teachers’ and PSP Investments (together “the Consortium”), in which the Consortium will acquire all of the units in the Spark Infrastructure Trust by means of a Trust Scheme and all of the loan notes issued by Spark RE by means of a Creditors’ Scheme. • The Offer (based on $2.95 per stapled security, i.e. before payment of the interim distribution of 6.25 cents per stapled security (“cps”)) values Spark Infrastructure at an equity value of $5.2 billion and an enterprise value of $10.1 billion. • Spark Infrastructure securityholders1 will receive total value of $2.95 cash per stapled security before franking credits, plus additional consideration if the Schemes have not been implemented by 15 February 2022. • The total value of $2.95 cash per stapled security comprises: i. cash consideration from the Consortium of approximately $2.7675 per stapled security, plus ii. Spark Infrastructure’s interim distribution for 2021 of 6.25 cps2, plus iii. a franked special distribution expected to be approximately 12.00 cps3. • The special distribution will be franked to the fullest extent possible, which will provide certain Spark Infrastructure securityholders4 who can utilise the full benefit of franking credits with an additional benefit of approximately 5.00 cps. Spark Infrastructure’s interim distribution for 2021 is also expected to carry franking credits of approximately 1.5 cps. • The Board of Directors of Spark Infrastructure unanimously recommends that Securityholders vote in favour of the Schemes at the scheme meetings, in the absence of a Superior Proposal and subject to an independent expert concluding in the independent expert’s report (and continuing to conclude) that the Schemes are in the best interests of Spark Infrastructure securityholders. • The Schemes are subject to approval by Spark Infrastructure securityholders at Scheme meetings which are expected to be held by the end of 2021. • If the Schemes have not been implemented by 15 February 2022, Spark Infrastructure securityholders will be entitled to additional cash consideration of 1.00 cps on 15 February 2022 and approximately 1.00 cps5 per month thereafter, calculated daily, from that date until implementation. 1 Subject to being on the Spark Infrastructure register on the relevant record date. 2 In order to receive the interim distribution for 2021, Securityholders must have been on the register on the distribution record date of 8 July 2021. The interim distribution is payable on 15 September 2021. 3 If the Schemes are implemented after 31 December 2021, the amount of the special distribution will be adjusted for the Final Distribution for 2021. 4 The ability of Spark Infrastructure securityholders to benefit from franking credits depends on their individual tax circumstances, including their tax residency and marginal tax rate. 5 The additional cash consideration daily rate is $0.0003333 per day for the period after 15 February 2022. Transaction Update Spark Infrastructure RE Limited (ACN 114 940 984) (in its capacity as responsible entity of Spark Infrastructure Trust (ARSN 116 870 725)) (“Spark Infrastructure”) announces that it has entered into a Scheme Implementation Deed (“SID”) with an entity owned by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), on behalf of certain of its affiliate infrastructure investment funds, vehicles and entities managed and/or advised by it or its affiliates, Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and Public Sector Pension Investment Board (“PSP Investments”), together the Consortium. Background On 15 July 2021, Spark Infrastructure announced that it had received two conditional and non-binding proposals from the Consortium6 to acquire all of the ordinary stapled securities in Spark Infrastructure by way of a scheme. The proposals included an initial proposal (“Initial Proposal”) for all cash consideration of $2.70 per stapled security, to be reduced to the extent that Spark Infrastructure pays or declares a distribution to its Securityholders prior to the implementation of the proposed transaction, and a subsequent revised proposal (“Revised Proposal”) for all cash consideration of $2.80 per stapled security on the same basis as the Initial Proposal. Spark Infrastructure had already announced on 1 July 2021 an interim distribution for 2021 of 6.25 cps payable on 15 September 2021, hence the implied consideration under each of the Initial Proposal and the Revised Proposal was $2.6375 per stapled security and $2.7375 per stapled security respectively. On 28 July 2021 Spark Infrastructure announced that it had received a further revised proposal (“Further Revised Proposal”) from the Consortium for all cash consideration of $2.95 per stapled security, to be reduced to the extent that Spark Infrastructure pays or declares a distribution to its Securityholders prior to the implementation of the proposed transaction. The implied consideration under the Further Revised Proposal was $2.8875 per stapled security. The Further Revised Proposal was received following the provision of limited information regarding Spark Infrastructure’s business and its prospects by Spark Infrastructure to the Consortium after the signing of a Confidentiality Agreement. Following careful consideration, and consultation with its advisers, the Board of Spark Infrastructure considered that it was in the interests of Spark Infrastructure’s securityholders to engage further with the Consortium, and agreed to provide the Consortium with the opportunity to conduct due diligence on a non-exclusive basis. The Consortium has completed due diligence and Spark Infrastructure has now entered into a Scheme Implementation Deed (“SID”) with the Consortium. Overview of the Schemes Under the SID, it is proposed that the Consortium will acquire all of the units in the Spark Infrastructure Trust by means of a Trust Scheme (the “Trust Scheme”) and all of the loan notes issued by Spark RE by means of a Creditors’ Scheme (the “Creditors’ Scheme”), together the Schemes (the “Schemes”). If the Schemes are implemented, Spark Infrastructure securityholders can receive a total value of $2.95 cash per stapled security, comprising cash consideration from the Consortium of approximately $2.7675 per stapled security, Spark Infrastructure’s interim distribution for 2021 of 6.25 cps7, plus a franked special distribution expected to be approximately 12.00 cps8. 6 On 10 August 2021 it was announced that PSP Investments had joined the previous consortium of KKR and OTPP. 7 In order to receive the interim distribution for 2021, Securityholders must have been on the register on the distribution record date of 8 July 2021. The interim distribution is payable on 15 September 2021. 8 If the Schemes are implemented after 31 December 2021, the amount of the special distribution will be adjusted for the Final Distribution for 2021. After payment of the interim distribution for 2021 of 6.25 cps in September 2021, the total value to be paid to Spark Infrastructure securityholders under the Schemes will be $2.8875 per stapled security which represents: • an increase of $0.25 per stapled security (approximately 9.5%) to the implied price offered under the Initial Proposal from the Consortium of $2.6375 per stapled security; • a 26% premium to the closing price of $2.30 per stapled security on 13 July 2021, being the date prior to Spark Infrastructure’s securities being placed in trading halt on 14 July 2021 pending Spark Infrastructure’s announcement on 15 July 2021; and • a 31% premium to the three month volume weighted average price (“VWAP”) up to and including 13 July 2021 of $2.20 per stapled security. Under the SID, Spark Infrastructure is permitted to pay a special distribution expected to be approximately 12.00 cps, franked to the fullest extent possible.9 This will provide certain Spark Infrastructure securityholders10 who can utilise the full benefit of franking credits with an additional benefit of approximately 5.00 cps. To the extent that the special distribution is paid, the consideration to be received under the Schemes will be reduced by the cash amount of the special distribution. The quantum of the special distribution will depend upon the availability of franking credits and may be less than the amount currently expected. Assuming the special distribution is approximately 12.00 cps fully franked, inclusive of 5.00 cps of franking credits, certain eligible Spark Infrastructure securityholders who can utilise the full benefit of available franking credits would potentially receive a total value under the Schemes of approximately $2.9375 per security (not including the interim distribution for 2021 of 6.25 cps which is expected to also have franking credits of approximately 1.5 cps attached). Further consideration in the event of delays The Offer is subject to a number of conditions which may delay the intended Scheme meetings which are expected to be held by the end of 2021. If the Schemes have not been implemented by 15 February 2022, Spark Infrastructure securityholders will be entitled to additional cash consideration of 1.00 cps on 15 February 2022 and a further $0.0003333 per stapled security (approximately 1.00 cps per month) for every day thereafter up to the date of implementation.11 Spark Infrastructure Board unanimously recommends the Schemes The Board of Directors of Spark Infrastructure unanimously recommends that Securityholders vote in favour of the Schemes at the scheme meetings, in the absence of a Superior Proposal and subject to an independent expert concluding in the independent expert’s report (and continuing to conclude) that the Schemes are in the best interests of Spark Infrastructure securityholders. Subject to the same qualifications, each Spark Infrastructure Board member intends to vote, or procure the voting of, any Spark Infrastructure stapled securities held or controlled by them in favour of the Schemes. Spark Infrastructure Chair Doug McTaggart said: “The Spark Infrastructure Board unanimously recommends Securityholders vote in favour of the Schemes in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Schemes are in the best interests of Spark Infrastructure securityholders. The Board and management have engaged 9 If the Schemes are implemented after 31 December 2021, the amount of the special distribution will be adjusted for the Final Distribution for 2021. 10 The ability of Spark Infrastructure securityholders to benefit from franking credits depends on their individual tax circumstances, including their tax residency and marginal tax rate. 11 But no later than up to the end date for the SID of 24 May 2022 (unless the parties agree an extension). constructively with the Consortium over several months to secure additional value beyond the initial approach. The Board believes that the agreed Scheme value appropriately reflects the scarcity value of Spark Infrastructure’s Tier One assets and their reliable and inflation-linked operating cashflows, our attractive pipeline of growth projects and the important future role our businesses will play in the decarbonising of Australia’s electricity grid.” Spark Infrastructure Managing Director Rick Francis said: “Spark Infrastructure’s businesses will continue to play a critical role in the transformation of Australia’s energy sector. The investments we have made in distribution, transmission and renewables put Spark Infrastructure front and centre of Australia’s low-emissions energy future. We are pleased this has been recognised in the Scheme consideration agreed with the Consortium.” The Consortium said: “We are excited to invest in Spark Infrastructure’s leading portfolio of electricity networks and help to advance its mission to provide essential energy infrastructure to the millions of customers across Australia that rely on Spark Infrastructure’s assets. The Consortium takes its role as a steward of critical infrastructure seriously and we look forward to working with our partners and stakeholders to support Australia’s energy transition and decarbonisation efforts.” Details of the SID The Schemes are subject to various conditions. A copy of the SID, which sets out the terms and conditions of the Schemes and associated matters, is attached to this announcement. Capitalised terms used in this section below have the meaning given to those terms in the SID. In summary, conditions for implementation of the Schemes, include: • approval of Australia’s Foreign Investment Review Board (“FIRB”); • the Consortium obtaining foreign merger clearances; • approval of Spark Infrastructure securityholders; • the Independent Expert issues an Independent Expert’s Report which concludes that the Schemes are in the best interests of the Spark Infrastructure securityholders; • approval of the Creditor’s Scheme by the Court; • no Spark Infrastructure Prescribed Occurrence or Material Adverse Change occurring; and • other customary conditions. Under the SID, Spark Infrastructure is subject to customary exclusivity obligations, including “no shop”, “no talk” (subject to customary fiduciary exceptions) and notification obligations. The SID also contains a matching right regime in respect of any Superior Proposal received by Spark Infrastructure. The SID also details circumstances under which a Reimbursement Fee of $52 million may be payable by Spark Infrastructure to the Consortium, or a Reverse Reimbursement Fee of $52 million may be payable by the Consortium to Spark Infrastructure, in certain circumstances. Indicative timetable and next steps A Scheme booklet, which will contain important information relating to the Schemes and the Scheme meetings, the reasons for the Spark Infrastructure Board recommendation, and the Independent Expert’s Report, is currently expected to be sent to securityholders in Quarter 4, 2021. The Schemes are subject to approval by Spark Infrastructure securityholders at the Scheme meetings which are currently expected to be held by the end of 2021. Spark Infrastructure is being advised by Goldman Sachs and Herbert Smith Freehills. Spark Infrastructure makes this statement, and will continue to keep the market informed, in accordance with its continuous disclosure obligations. In the interim, Securityholders do not need to take any action at the present time. This announcement is authorised for release by the Board of Directors of Spark Infrastructure

    DYOR

    i hold SKI ( bought October 2011 @ $1.20 )

  6. 78.6k
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    Spark Infrastructure Group to be removed from the
    S&P/ASX 200 Index
    SYDNEY, NOVEMBER 24, 2021: S&P Dow Jones Indices announced today that it will remove Spark
    Infrastructure Group (XASX: SKI) from the S&P/ASX 200, subject to final court approval of the scheme
    of arrangement whereby the company will be acquired by Pika Bidco Pty Limited.
    S&P Dow Jones Indices will remove Spark Infrastructure Group from the S&P/ASX 200 effective prior
    to the open of trading on November 30, 2021.Spark Infrastructure Group will be replaced by Sandfire
    Resources Limited (XASX: SFR) in the S&P/ASX 200 effective prior to the open of trading on
    November 30, 2021.
    For more information about S&P Dow Jones Indices, please visit www.spdji.com.

    DYOR

    i hold SKI ( bought October 2011 @ $1.20 )

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