Spark Infrastructure Group agreed to a takeover offer from consortium led by KKR & Co. valuing the Australian energy company at about A$5.2 billion ($3.7 billion).
The private equity firm and its partners offered A$2.95 per share in a scheme-of-arrangement deal for the Sydney-based company, according to an exchange filing Monday. The deal, which was unanimously recommended by Spark’s board of directors, confirmed a Bloomberg News report Sunday that the parties were nearing an agreement.
The consortium also includes Canadian investors Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board, according to the filing. Meetings for Spark shareholders to vote on the deal are expected to be held by the end of the year.
The takeover caps weeks of due diligence by the investment funds, following an offer that started at A$2.70 per share, and was raised to A$2.80 before the firms put forward the proposal for A$2.95 per share late last month.
Spark Infrastructure shares were trading at A$2.825 on Monday at 10:33 a.m. in Sydney, after jumping as much as 2.5%. They have risen 34% this year to date.
Its assets consist of a portfolio of minority stakes in other electricity transmission and distribution businesses in Australia, including 49% holdings in both South Australia’s electricity distribution network and Victoria Power Networks Pty, and a 15% interest in the TransGrid high-voltage electricity transmission network. It also owns the Bomen Solar Farm Pty in New South Wales.
Spark’s financial year 2021 results are scheduled to be released on Tuesday.