AusNet Services (formerly: SP Ausnet)

[Layman A]

Not again ??
The previous cases has haunted SP Ausnet for many years...

Is SP AusNet treated as an ATM machine by the Aussie ?

Latest update on the company. It is going to be a long and tedious fight....

(not vested)

AusNet Services faces 2 new class action suits from 2014 Yarram bushfire

AusNet Services is facing two new class actions in relation to bushfires that occurred in February 2014 in Yarram and Mickleham.

The Yarram bushfire started on Feb 9 near near Morwell Yarram Road. It is alleged the fire commenced when vegetation made contact with a distribution line. The company has since been served with the court documents.

Separately, AusNet Services has also been informed that a second class action will be started against it in relation to a bushfire that also occurred on Feb 9 in Mickleham Road, Mickleham.

SP AusNet does not believe it was negligent and believes that it acted prudently at all times. It therefore intends to vigorously defend the proceedings.
http://www.theedgesingapore.com/the-dail...hfire.html

[greengiraffe]

This is a human rights country where animals' lives are at times more valuable than humans... where culling of sharks can raise community uproar...

Whatmore now u have human lives lost.

Anyway, previous cases have been settled and covered by insurance. SP has divested a big bulk of their stakes to Chinese.

Electricity consumption has been dropping due to substantial rise in solar capacity so regulated distributors' days are likely to be numbered.

Avoid
GG

Not again ??
The previous cases has haunted SP Ausnet for many years...

Is SP AusNet treated as an ATM machine by the Aussie ?

Latest update on the company. It is going to be a long and tedious fight....

(not vested)

AusNet Services faces 2 new class action suits from 2014 Yarram bushfire

AusNet Services is facing two new class actions in relation to bushfires that occurred in February 2014 in Yarram and Mickleham.

The Yarram bushfire started on Feb 9 near near Morwell Yarram Road. It is alleged the fire commenced when vegetation made contact with a distribution line. The company has since been served with the court documents.

Separately, AusNet Services has also been informed that a second class action will be started against it in relation to a bushfire that also occurred on Feb 9 in Mickleham Road, Mickleham.

SP AusNet does not believe it was negligent and believes that it acted prudently at all times. It therefore intends to vigorously defend the proceedings.
http://www.theedgesingapore.com/the-dail...hfire.html

[starcraft_76]

Heng ar.. I had divested almost all my holding waiting to buy it back when it drop... but it somehow never drop to my target price.. :p

[CityFarmer]

The approved settlement, which costed A$378.6 million from the company

(not vested)

Australian court approves settlement for bushfire suit against AusNet Services

SINGAPORE (Dec 23): The Supreme Court of Victoria in Australia has formally approved a record settlement of almost A$500 million ($536 million) for a class-action suit over a series of deadly bushfires in 2009 sparked by a live power line owned by Singapore- and Sydney-listed AusNet Services ( Financial Dashboard).

Thousands of Australians in the state of Victoria will share a total payout of A$494.7 million, of which A$378.6 million will come from AusNet Services, according to a regulatory filing today by the company, which used to be known as SP AusNet.

The state government will pay A$103.6 million and the remaining A$12.5 million will come from the Utilities Services Corp, a power maintenance contractor.
...
http://www.theedgemarkets.com/sg/article...t-services

Latest update on the company. It is going to be a long and tedious fight....

(not vested)

AusNet Services faces 2 new class action suits from 2014 Yarram bushfire

AusNet Services is facing two new class actions in relation to bushfires that occurred in February 2014 in Yarram and Mickleham.

The Yarram bushfire started on Feb 9 near near Morwell Yarram Road. It is alleged the fire commenced when vegetation made contact with a distribution line. The company has since been served with the court documents.

Separately, AusNet Services has also been informed that a second class action will be started against it in relation to a bushfire that also occurred on Feb 9 in Mickleham Road, Mickleham.

SP AusNet does not believe it was negligent and believes that it acted prudently at all times. It therefore intends to vigorously defend the proceedings.
http://www.theedgesingapore.com/the-dail...hfire.html

[butcher]

Will Ausnet be able to claim from its insurance?
Storm is over, stability and growth back on track

[ghchua]

Hi butcher,

The bushfire at Kilmore East had been settled, with AusNet Services paying A$378.6 million. The amount had been fully covered by insurer.

The bushfires at Murrindindi, Yarram and Mickleham litigation still ongoing. AusNet Services had claimed that they would defend those claims as they believe that they are not negligent. The company also believes that their insurance should be sufficient to cover those claims and costs incurred in those proceedings.

Hope that the above helps. Do refer to their presentation slides for more details:
http://infopub.sgx.com/Apps?A=COW_CorpAn...tation.pdf

[greengiraffe]

AusNet’s $6bn bid for NSW power assets blows a fuse
THE AUSTRALIAN JULY 24, 2015 12:00AM

Greg Brown

Property Reporter
Sydney
Bridget Carter

Mergers & Acquisitions Editor
Sydney

Energy provider AusNet’s plans to buy the NSW government’s $6 billion electricity transmission ­assets have been thrown into ­turmoil after two of its major Asian investors derailed funding plans for the acquisition target.

It comes as six bidding groups are set to receive information memorandums today for TransGrid — the most attractive of the government’s suite of electricity assets up for sale — before indicative bids are due on August 27.

In a dramatic twist at yesterday’s annual general meeting in Melbourne, key foreign shareholders of AusNet — China’s State Grid and Singapore Power — blocked a motion to raise fresh equity, probably intended to fund the TransGrid purchase. They also voted down the remuneration ­report, which led to a “first strike” against it, and elected to have Tony Iannello removed from the board after the director this month broke cover and declared the ­company’s interest in the TransGrid auction.

Start of sidebar. Skip to end of sidebar.

MORESurprise move to pull plug on rival
End of sidebar. Return to start of sidebar.

Plans by 30 per cent shareholder Singapore Power and China’s State Grid to obstruct the raising approval could see Australian shareholders in the $5bn utility owner miss out on owning one of the country’s most valuable electricity networks, and better position other foreign-backed consortiums vying for TransGrid.

It may also cause a headache for the NSW government, which faced scare tactics from Labor during the election about the possibility of a state-owned Chinese company controlling the network.

State Grid, which owns 20 per cent of AusNet, is itself a bidder for TransGrid in partnership with Macquarie Group’s infrastructure arm MIRA.

The latest development is seen as an attempt by State Grid to ­improve its own chances in the contest, while Singapore Power is believed to be siding with the ­Chinese to stave off any tension surrounding the pair’s joint ­ownership relationship of the Australian energy infrastructure business Jemena.

Analysts believe AusNet is now out of the contest to buy the network, but sources close to the company maintain it remains a contender after submitting an expression of interest for the business by the July 14 cut-off.

Other options for AusNet to remain in the race are to make ­attempts to join forces with Singapore Power, which has not expressed interest in TransGrid, or funding the deal through debt with assistance from its adviser Citi.

The government is hoping that a competitive process for TransGrid, which is being handled by Deutsche Bank and UBS, could raise up to $9bn.

If the AusNet vote on launching an equity raising had passed, it would have allowed it to issue almost $700 million of equity without shareholder approval.

AusNet’s chairman, Ng Kee Choe, said any equity raising would “not necessarily” be linked to an acquisition of NSW electricity assets. Mr Choe, a former Singapore Power chairman, said the board would now discuss its next step.

Simon Mawhinney, managing director of Allan Gray Australia, which is AusNet’s third largest ­investor with a 4.87 per cent stake, voted in favour of the share resolution.

He raised concerns about what has been seen as a move by Singapore Power and State Grid to ­preclude AusNet bidding at a reasonable price for assets.

But he added that he was against AusNet participating in the TransGrid auction, despite voting in favour of the share issue resolution.

“This view that people have out there that there are synergies from buying regulated assets is somewhat flawed because those synergies only last until the regulatory reset and then the regulator takes them away from you and gives them back to the consumer,” he said. “It’s not unreasonable for shareholders of a company to expect that company to seek shareholder approval where it is going to issue shares to fund large acquisitions. It is reasonable and it is done regularly.” Ian Renard, the longest-running AusNet board member who retired yesterday, said he was ­“appalled” by the vote that would end Mr Iannello’s time at the ­company.

“He had the support of the board in re-election and for this vote of no-confidence we’ve had in the board is truly shocking and no doubt the chairman will reflect on that.

“You would have seen that 99 per cent of shareholders who voted other than State Grid or SP have supported him.” Mr Renard also revealed that the company halted trading because it suspected that Singapore Power would veto key resolutions.

“But I had thought they might have changed their mind,” he said.

A Singapore Power representative, Lim Howe Run, spoke at the meeting before the vote, signalling that it did not support an equity raising.

“Beyond share issuance for the employee plan and dividend reinvestment plan, Singapore Power does not support the granting of the general share issuance mandate,” Mr Lim said.

“The company will always have the opportunity to, and should table equity issuance requirements, especially significant ones, to all shareholders at the appropriate time for deliberation by all shareholders.

“As a value investor Singapore Power is supportive of growth but only if it is value-accretive. Shareholders should have the opportunity to consider the impact and purpose of any significant equity raising proposal.”

NSW Treasurer Gladys Berejiklian said in a statement yesterday that TransGrid was an asset of “high market interest’’ and the ­entire electricity sale program for the state would unlock $20bn to fund new roads, rail, hospitals, schools, sports and cultural facilities across NSW while also investing in vital water infrastructure in our regions.

[greengiraffe]

AusNet nonsense

The pretence that AusNet Services was not a controlled company was put beyond doubt yesterday when China-based State Grid (19 per cent) and Singapore Power (30 per cent) combined to dump one director, Tony Iannello, and vote down a standard funding clause.

The conspiracy theory says it’s outrageous the two shareholders have effectively blocked a logical bid for the NSW pole and wires electricity assets.

The theory is nonsense. Whether it has or hasn’t is frankly irrelevant. This company was controlled by Singapore before the selldown to State Grid two years ago, and by the two shareholders since. Whether the two acted in concert is open to conjecture and there are certainly unusual circumstances at play. Good luck in proving that argument and instead the conspiracy theory can be left as just that.

The theory makes zero sense and instead minorities can now simply appreciate their standing or lack thereof on AusNet’s share register. State Grid is bidding with Macquarie Group for the NSW assets but there are at least ­another five bidders at this stage.

State Grid is not about to block AusNet from bidding against that field but instead has shown the company’s independence is long gone. Just for the sake of argument, yesterday’s vote also doesn’t stop a capital raising just one in which the major shareholders would be diluted.

AusNet’s $6bn bid for NSW power assets blows a fuse
THE AUSTRALIAN JULY 24, 2015 12:00AM

Greg Brown

Property Reporter
Sydney
Bridget Carter

Mergers & Acquisitions Editor
Sydney

Energy provider AusNet’s plans to buy the NSW government’s $6 billion electricity transmission ­assets have been thrown into ­turmoil after two of its major Asian investors derailed funding plans for the acquisition target.

It comes as six bidding groups are set to receive information memorandums today for TransGrid — the most attractive of the government’s suite of electricity assets up for sale — before indicative bids are due on August 27.

In a dramatic twist at yesterday’s annual general meeting in Melbourne, key foreign shareholders of AusNet — China’s State Grid and Singapore Power — blocked a motion to raise fresh equity, probably intended to fund the TransGrid purchase. They also voted down the remuneration ­report, which led to a “first strike” against it, and elected to have Tony Iannello removed from the board after the director this month broke cover and declared the ­company’s interest in the TransGrid auction.

Start of sidebar. Skip to end of sidebar.

MORESurprise move to pull plug on rival
End of sidebar. Return to start of sidebar.

Plans by 30 per cent shareholder Singapore Power and China’s State Grid to obstruct the raising approval could see Australian shareholders in the $5bn utility owner miss out on owning one of the country’s most valuable electricity networks, and better position other foreign-backed consortiums vying for TransGrid.

It may also cause a headache for the NSW government, which faced scare tactics from Labor during the election about the possibility of a state-owned Chinese company controlling the network.

State Grid, which owns 20 per cent of AusNet, is itself a bidder for TransGrid in partnership with Macquarie Group’s infrastructure arm MIRA.

The latest development is seen as an attempt by State Grid to ­improve its own chances in the contest, while Singapore Power is believed to be siding with the ­Chinese to stave off any tension surrounding the pair’s joint ­ownership relationship of the Australian energy infrastructure business Jemena.

Analysts believe AusNet is now out of the contest to buy the network, but sources close to the company maintain it remains a contender after submitting an expression of interest for the business by the July 14 cut-off.

Other options for AusNet to remain in the race are to make ­attempts to join forces with Singapore Power, which has not expressed interest in TransGrid, or funding the deal through debt with assistance from its adviser Citi.

The government is hoping that a competitive process for TransGrid, which is being handled by Deutsche Bank and UBS, could raise up to $9bn.

If the AusNet vote on launching an equity raising had passed, it would have allowed it to issue almost $700 million of equity without shareholder approval.

AusNet’s chairman, Ng Kee Choe, said any equity raising would “not necessarily” be linked to an acquisition of NSW electricity assets. Mr Choe, a former Singapore Power chairman, said the board would now discuss its next step.

Simon Mawhinney, managing director of Allan Gray Australia, which is AusNet’s third largest ­investor with a 4.87 per cent stake, voted in favour of the share resolution.

He raised concerns about what has been seen as a move by Singapore Power and State Grid to ­preclude AusNet bidding at a reasonable price for assets.

But he added that he was against AusNet participating in the TransGrid auction, despite voting in favour of the share issue resolution.

“This view that people have out there that there are synergies from buying regulated assets is somewhat flawed because those synergies only last until the regulatory reset and then the regulator takes them away from you and gives them back to the consumer,” he said. “It’s not unreasonable for shareholders of a company to expect that company to seek shareholder approval where it is going to issue shares to fund large acquisitions. It is reasonable and it is done regularly.” Ian Renard, the longest-running AusNet board member who retired yesterday, said he was ­“appalled” by the vote that would end Mr Iannello’s time at the ­company.

“He had the support of the board in re-election and for this vote of no-confidence we’ve had in the board is truly shocking and no doubt the chairman will reflect on that.

“You would have seen that 99 per cent of shareholders who voted other than State Grid or SP have supported him.” Mr Renard also revealed that the company halted trading because it suspected that Singapore Power would veto key resolutions.

“But I had thought they might have changed their mind,” he said.

A Singapore Power representative, Lim Howe Run, spoke at the meeting before the vote, signalling that it did not support an equity raising.

“Beyond share issuance for the employee plan and dividend reinvestment plan, Singapore Power does not support the granting of the general share issuance mandate,” Mr Lim said.

“The company will always have the opportunity to, and should table equity issuance requirements, especially significant ones, to all shareholders at the appropriate time for deliberation by all shareholders.

“As a value investor Singapore Power is supportive of growth but only if it is value-accretive. Shareholders should have the opportunity to consider the impact and purpose of any significant equity raising proposal.”

NSW Treasurer Gladys Berejiklian said in a statement yesterday that TransGrid was an asset of “high market interest’’ and the ­entire electricity sale program for the state would unlock $20bn to fund new roads, rail, hospitals, schools, sports and cultural facilities across NSW while also investing in vital water infrastructure in our regions.

[greengiraffe]

Singapore Power denies colluding with State Grid to derail AusNet bid for TransGrid
THE AUSTRALIAN JULY 24, 2015 1:23PM

Greg Brown

Property Reporter
Sydney

Power lines feed into NSW’s TransGrid network. Source: Supplied

Singapore Power has denied colluding with China’s State Grid Corporation to block key resolutions at AusNet Services’ annual general meeting yesterday that have thrown the listed company’s bid for NSW’s $6 billion TransGrid network in disarray.

The state-owned companies — which together hold half AusNet’s (AST) securities — blocked AusNet’s ability to raise capital without consulting shareholders, while also ending the term of non-executive director Tony Ianello, who was leading AusNet’s bid for the NSW electricity transmission assets.

Some saw the development as an attempt by State Grid to ­improve its own chances in a bid for TransGrid, while Singapore Power was believed to be siding with the ­Chinese to stave off any tension surrounding the pair’s joint ­ownership relationship of the Australian energy infrastructure business Jemena.

Start of sidebar. Skip to end of sidebar.

MOREAusNet’s $6bn plan blows a fuse
MORESurprise move to pull plug on rival
End of sidebar. Return to start of sidebar.

But in a statement today, 31.1 per cent shareholder Singapore Power denied that it had colluded with State Grid (19.9 per cent), while adding it conditionally supported an AusNet bid for TransGrid “provided that such opportunities are value accretive to shareholders”.

“There have been no arrangements nor understandings between SP and State Grid on any of the resolutions put forward at AusNet’s AGM.

“As a shareholder, SP has and would always consider each resolution on its merits and vote accordingly,” Singapore Power said.

“As previously informed, SP did not submit an expression of interest and will not participate directly in the proposed NSW TransGrid transaction or enter into any consortium which competes with AusNet for this transaction.

“However, SP is supportive of AusNet’s growth opportunities, including the proposed NSW TransGrid transaction, provided that such opportunities are value accretive to shareholders.”

Plans by Singapore Power and State Grid to obstruct the raising approval could see Australian shareholders in the $5bn utility owner miss out on owning one of the country’s most valuable electricity networks, and better position other foreign-backed consortiums vying for TransGrid.

Singapore Power also said that the board informed the company in April that it would not support the re-election of Mr Ianello to the board.

“SP informed AusNet in April 2015, and formally in writing on May 11, 2015, that it would not support the re-election of Tony Iannello. The board was fully aware of this position well in advance of yesterday’s AGM.”

[greengiraffe]

CHANTICLEER Jul 27 2015 at 7:38 PM Updated Jul 27 2015 at 8:34 PM
AusNet directors felt threatened and sought legal advice

Chairman of AusNet, Ng Kee Choe. Independent directors of the company sought legal advice after receiving a threat from Singapore Power in late May. Ken Irwin
Tony Boyd

The corporate governance train wreck at Victoria's primary electricity transmission network AusNet Services is worse than first thought with independent directors worried that dominant shareholder Singapore Power wanted them to break the law.

Chanticleer can reveal that independent directors of the company sought legal advice after receiving a threat from Singapore Power in late May.

The threat came in the form of a letter to the company setting out the terms and conditions of a joint bid for TransGrid, the transmission company being sold by the NSW government.

The letter set out the terms for bidding and concluded with the threat that if the board did not agree to the terms Singapore Power would do everything in its power to stop AusNet from bidding for TransGrid.

It is illegal under the Competition and Consumer Act (CCA) for separate parties to make agreements between themselves about bidding for contracts.

This prohibition on bid rigging under the cartel provisions of the CCA is being tested in the Federal Court at the moment. The Australian Competition and Consumer Commission (ACCC) is taking action against Paul and Moses Obeid over alleged cartel behaviour in the bidding for mining leases in NSW in concert with Cascade Coal.

There is no suggestion by Chanticleer that Singapore Power acted illegally in threatening the directors of AusNet. In fact, if Singapore Power is a related party of AusNet this would be the robust argy bargy between commercial partners.

But the independent directors of AusNet, led by Tony Iannello, were sufficiently worried about the threat from Singapore Power to seek legal advice on the implications of the threat.

At that time AusNet was working with its financial adviser Citi to develop a consortium bid for TransGrid.

AusNet's independent directors sought legal advice from the law firm advising them on the transaction Gilbert + Tobin.

Chanticleer understands the directors were conscious of the CCA cartel provisions, which say that you cannot act in concert to get a better outcome from a bidding process. Based on their review of the legal advice directors took the view that it was not appropriate to accede to the threat made by Singapore Power.

There was a second important reason why the independent directors did not think it was in the interests of shareholders to agree to the TransGrid bidding conditions put forward by Singapore Power.

The independent directors thought the terms were not commercial. The price was too high and could possibly have resulted in Singapore Power potentially entrenching its position at the company.

It is clear the independent directors of the company were trying their best to defend the interests of minority shareholders.

This strong message did eventually get through to Singapore Power.

In the weeks leading up to last week's AusNet annual general meeting, Singapore Power sent another letter to the board resiling from its demand that the independent directors abide by its earlier threat.

But Singapore Power still decided to use its voting power to sack Iannello from the board. Singapore Power was joined in that vote by China's State Grid Corporation.

Singapore Power owns 31.1 per cent of AusNet and State Grid owns 20 per cent. If they happen to agree on important issues such as director voting they can jointly control the company. But Lim Howe Run, Singapore Power's corporate representative, said last week that "there have been no arrangements nor understandings between SP and State Grid on any of the resolutions put forward at AusNet's ag".

Singapore Power said it did not submit an expression of interest and will not participate directly in the proposed NSW TransGrid transaction or enter into any consortium which competes with AusNet for this transaction. If the goings on at AusNet are investigated by the ACCC a critical question will be whether or not Singapore Power and AusNet were related parties or independent bidders for TransGrid at the time the letter was sent.

Industry sources say Singapore Power did explore bidding in its own right for TransGrid but it struck problems because of concerns about the corporate governance of any consortium it was involved in.

To a series of questions Chanticleer sent to Singapore Power's PR representative on Monday, Singapore Power said it "has nothing further to add beyond the statements which have already been provided".