Origin Energy Limited (Origin) today announced it had entered into a Sale Agreement with AusNet Transmission Group Pty Ltd (AusNet Services) for the sale of Mortlake Terminal Station for a cash consideration of $110 million.
Mortlake Terminal Station, which is currently operated and maintained by AusNet Services, connects Origin’s gas-fired Mortlake Power Station to Victoria’s electricity market.
Forming part of Origin’s broader asset divestment program announced in September 2015 targeting proceeds of $800 million, the planned sale of Mortlake Terminal Station stands to provide Origin a pre-tax gain of approximately $25 million and represents a 12.9x FY2017 EBITDA multiple1.
Under the terms of the transaction, Origin will enter into a long-term agreement with AusNet Services to continue to connect Mortlake Power Station to the Victorian network.
Origin Managing Director, Grant King said, “The sale of Mortlake Terminal Station demonstrates progress against our stated intention to generate $800 million through asset divestments including non-operated upstream interests, direct investments in wind generation and infrastructure assets.
“In turn, this will help strengthen Origin’s balance sheet and build resilience in a lower oil price environment,” Mr King said.
The transaction is subject to customary conditions – including Foreign Investment Review Board approval and finalisation of ancillary documentation with the Australian Energy Market Operator – and is expected to be completed prior to 30 June 2016.