Infratil completes the sale of 100% of Lumo Energy

Infratil has announced completion of the sale of 100% of Lumo Energy (including its generation assets) and Direct Connect to Snowy Hydro Limited for gross proceeds of A$646 million.

Infratil expects its net cash proceeds from the sale of its interest to amount to approximately NZ$668 million. The final proceeds are dependent on the working capital adjustment, which will be finalised after the completion date, and the NZ$:A$ exchange rate.

Infratil has owned the Australian businesses since 2004, during which time Lumo Energy has grown to become the fourth largest participant in the National Electricity Market (NEM), servicing over 540,000 customers in Victoria, South Australia, New South Wales and Queensland.

Direct Connect Australia is the market leading utilities connections provider with exclusive relationships with more than 3,200 real estate agents across Australia. The combined businesses employ just over 600 people based primarily in Melbourne. The portfolio includes a 163.4MW portfolio of diesel peaking generators in South Australia and New South Wales and a power station development site in Bamarang.

Snowy Hydro provides an array of financial hedge and insurance products to participants in the NEM. They are a leading provider of peak, renewable electricity to the NEM and a fully integrated Australian energy business with an excellent track record in financial performance, engineering innovation, workplace culture and business practices. They currently employ over 650 personnel in Cooma, Jindabyne, Talbingo, Khancoban, Cabramurra, La Trobe Valley, Sydney and Melbourne.

The combined businesses will create the fourth largest integrated generator and retailer in Australia’s NEM servicing nearly 1 million customers with a complete portfolio of products and services.