Allens advises AGL on sale of metering subsidiary
7 November 2017
Allens has advised AGL Energy Limited on the sale of its digital metering subsidiary, Active Stream Pty Ltd, to Ausgrid.
The deal represents the first M&A activity in the digital metering market in Australia ahead of the introduction of the 'Power of Choice' regulatory reforms on 1 December, which will expand competition in metering and related services.
The advice uniquely positions Allens as a leader in digital metering, with the firm having also advised the Australian Energy Market Commission on the design, development and drafting of the Power of Choice reforms in 2016.
The sale of Active Stream, which has installed more than 230,000 digital meters across New South Wales, Queensland and South Australia since 2015, is set to generate approximately $25 million in post-tax profit for AGL.
Along with all aspects of the sale process, Allens advised AGL on a metering services agreement that was packaged as part of the sale in which Active Stream will provide digital metering services to AGL on a non-exclusive basis.
'We congratulate AGL on this market-leading sale, part of its broader strategy to become technology agnostic in its provision of products and services,' said Melissa Keane, Managing Associate and leader on the deal from Allens.
'We expect this transaction will be the first of many in the sector as a result of the Power of Choice reforms, and we're proud to be leading the market with this advice.'
Allens is currently assisting both metering businesses and electricity retailers to prepare for operation once the new reforms come into effect.
The sale is expected to reach completion in early December.
|Allens legal team||Melissa Keane (Managing Associate, Projects & Development), Anna Collyer (Partner, Projects & Development), Wendy Rae (Partner, Corporate)|
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Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.