Australian Pipeline to raise A$200 million for GasNet Australia purchase

By Laura Lutz

Des Moines, Aug. 31 - Australian Pipeline Trust plans to raise A$200 million in connection with its acquisition of GasNet Australia.

The financing will include a placement of units with institutional investors and a Security Purchase Plan.

Under the plan, existing holders of Australian Pipeline units as of Sept. 5 will be able to purchase up to A$5,000 new units. The issue price for the security purchase plan will be the lower of the institutional price and a 2.5% discount to the average of the volume weighted daily average price for the five business days after closing of the plan.

Petroliam Nasional Bhd., which has a 10.98% interest in Australian Pipline, has committed to subscribe for at least 10.98% of the placement. Australian Gas Light Co., which owns 30% of the outstanding units, will not subscribe.

ABN Amro Rothschild is the underwriter for the institutional deal.

The company did not release complete terms for the institutional placement.

Australian Pipeline announced its plans to acquire GasNet on Aug. 22. GasNet's board accepted the proposal on Thursday.

Under the agreement, Australian Pipeline will acquire all A$452 million of GasNet's stapled securities for A$3.10 each.

The proceeds of the deals will be used to partly restore financing flexibility and to partly fund acquisitions and development.

Australian Pipeline is a gas transporter with headquarters in Mascot, New South Wales, Australia.

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