Wesfarmers has acquired a 13.7 per cent shareholding in Quadrant Energy, less than three weeks after the oil and gas producer was established as an independent company.
Wesfarmers has acquired a 13.7 per cent shareholding in Quadrant Energy, less than three weeks after the oil and gas producer was established as an independent company.
Wesfarmers said today it would pay $US100 million (approximately $A130 million) to acquire a 27.4 per cent interest in the special purpose vehicle in which Macquarie Capital holds its interest, representing a 13.7 per cent interest in Quadrant.
As part of this investment, Wesfarmers will appoint Tim Bult as a director on the Quadrant Energy board.
Mr Bult is executive general manager business development and a former managing director of Wesfarmers' energy division.
Managing director Richard Goyder said in a statement the investment was complementary to the Wesfarmers chemicals, energy and fertilisers division’s existing businesses and was expected to generate a satisfactory return to shareholders.
The Quadrant brand was launched early this month after US-based Apache Corporation completed the sale of the business to a private equity consortium, comprising Brookfield Asset Management and Macquarie Capital as 50:50 owners.
The final purchase price of $US1.9 billion was below the previously announced price of $US2.1 billion, reflecting what Apache called $US225 million in customary, post-closing adjustments for the period between the effective date, October 1 2014, and closing.
Macquarie subsequently sold approximately a 20 per cent interest to AMB Holdings, the investment company of iron ore heiress Angela Bennett, which is now run by former Macquarie executive Michael Ashforth.
The Wesfarmers deal implies that Macquarie retains about 16 per cent of Quadrant, while Brookfield is believed to have retained its 50 per cent interest.
The overall sale price of Quadrant Energy is believed to be based on enterprise value, comprisng equity and debt, and is therefore not easily comparable to the price Wesfaremrts is paying for its equity sake.
The deal's financial structure was further complicated by major gas customer Alcoa of Australia making a prepayment of US$500 million in two instalments – US$300 million on financial close and US$200 million in 2016.
Quadrant’s inaugural chair is Melbourne-based Kate Vidgen, who is global head of principal investments in Macquarie Capital’s resources group.
The business continues to be led by chief executive Brett Darley, who joined Apache Energy in 2012 and was appointed managing director and region vice-president in July 2014.
