Brookfield-led investor group closes AusNet Services buyout

Investment Management Corp of Ontario said a consortium led by Brookfield Asset Management has closed its acquisition of AusNet Services, an Australian utility business. IMCO was part of the consortium, as were Healthcare of Ontario Pension Plan, Alberta Investment Management Corp, Public Sector Pension Investment Board and Sunsuper Superannuation Fund. The deal’s value was about $7.7 billion, Reuters reported.

PRESS RELEASE

IMCO and Canadian consortium complete acquisition of AusNet Services Limite
TORONTO (February 15, 2022) – The Investment Management Corporation of Ontario (“IMCO”) today announced the completion of the acquisition of AusNet Services Limited (ASX: AST) (“AusNet”) alongside Brookfield Asset Management Inc., Healthcare of Ontario Pension Plan (“HOOPP”), Alberta Investment Management Corporation, Canada’s Public Sector Pension Investment Board and Sunsuper Superannuation Fund (together, “the Consortium”) with IMCO acquiring an approximate 10 per cent ownership interest.
AusNet is a regulated utility business transmitting and delivering energy to 1.5 million customers in the state of Victoria, Australia. As the incumbent owner of Victoria’s electricity transmission and electricity and gas distribution networks, AusNet plays a leading role in helping the state achieve its Net Zero by 2050 commitment, enabling renewable generation while the broader grid transitions to greater decarbonization. Victoria is widely recognized as a transition leader in Australia, with bold renewable energy commitments made and interim targets identified since 2015.

“We are delighted to complete the take-private process of AusNet alongside our Consortium partners,” said Tim Formuziewich, Managing Director and Head of Global Infrastructure, IMCO. “AusNet is a world class utility that is pivotal to Victoria’s clean energy ambitions. We look forward to working with management and our Consortium partners in supporting the company to invest in the energy transition while continuing to offer customers access to safe, secure, predictable and cost-effective infrastructure.”

“IMCO’s approximately 10 per cent acquisition of AusNet represents our largest infrastructure investment and first take-private transaction completed to date. It provides our clients with exposure to high quality inflation protected regulated infrastructure while adding to IMCO’s growing portfolio of investments playing critical roles in the energy transition,” said Rossitsa Stoyanova, CIO, IMCO. “Congratulations to IMCO’s transaction team and our Consortium partners on closing an investment critical to enabling further renewable energy penetration.”

ABOUT IMCO
The Investment Management Corporation of Ontario (IMCO) manages $73.3 billion of assets on behalf of its clients. IMCO’s mandate is to provide broader public sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm’s length from government and guided by a highly experienced and professional Board of Directors. Follow us on LinkedIn and Twitter @imcoinvest.