Pacific Energy receives competing proposal for its sale

Pacific Energy received a Competing Proposal from OPTrust Private Markets Group, a division of OPSEU Pension Plan Trust Fund and a fund managed by Infrastructure Capital Grou (together, the OPTrust/ICG Consortium) for the acquisition of all of the issued capital in Pacific Energy for a total cash value of AUD1.085 (US$0.7337) per share in cash, by way of a scheme of arrangement. The Competing Proposal values Pacific Energy equity at AUD470 million (US$294.5 million) and an implied enterprise value of US$535 million (US$362 million).

Previously, Pacific Energy Limited had entered into a Scheme Implementation Deed with QGIF Swan Bidco Pty Ltd, a subsidiary of funds managed or advised by QIC Private Capital Pty Ltd The QIC Scheme valued Pacific Energy at AUD0.975 (US$0.659)  per share and all of the equity in Pacific Energy at AUD422 million (US$285.4 million) implying an enterprise value of AUD487 million (US$329 million).

The Pacific Energy Board considers the value premium of the Competing Proposal relative to the value of the QIC Scheme is sufficient to enable the Pacific Energy Board to notify QIC and commence the matching right process. Pacific Energy has notified QIC of the receipt of the Competing Proposal and QIC now has the right, but not the obligation, to submit a counter proposal for the Pacific Energy Board.