Australian energy group set for Hong Kong ownership

Hong Kong’s Cheng family, through investment vehicle, Chow Tai Fook Enterprises, is to purchase one of Australia’s biggest energy groups.

In a deal worth $3bn, the family is to acquire Alinta Energy. Alinta owns eight conventional power plants across Australia and New Zealand, a portfolio amounting to 2500 MW.
Alinta Energy
The deal is subject to regulatory approval and CTFE has submitted an application to Australia’s Foreign Investment Review Board (Firb). Canberra has heightened its scrutiny of foreign investment following a recent tide of Chinese investment into sensitive industries.

FT reports that last year Firb rejected separate A$10bn-plus bids by Hong-Kong based Cheung Kong Infrastructure and China’s State Grid Corporation for Ausgrid, one of Australia’s biggest electricity distribution companies.

In 2016 Alinta reported earnings before interest, tax, depreciation and amortisation of A$372.2m, up from A$357.8m a year earlier.

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