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Victoria Electricity Pty Limited

30 Mar 2007

Infratil has acquired options to move to 100% ownership of Victoria Electricity.

Infratil established Victoria Electricity in 2002, as a joint venture start-up, in order to take advantage of the deregulation of the Victorian electricity market which allowed full retail contestability in the supply of electricity.

Victoria Electricity has now grown to have approximately 150,000 electricity and gas customers, as at December 2006,
predominantly in Victoria.

Victoria Electricity was one of three venture capital investments made by Infratil around that time and it has been the standout performer. Based on the value of Victoria Electricity implied by the buyout price (in the range of A$120 to A$142million depending on the growth targets being met), Infratil’s investment of A$13 million has increased in value to between A$80 and A$90 million.

Infratil already owns, on a fully diluted basis, 58% of Victoria Electricity. The options entitle it to move to 100% by buying out the founding joint venture partners. The aggregate option premiums are A$1 million and the aggregate option exercise price is A$39.3 million, with the options exercisable on or before 30 April 2007. Should additional growth targets be met by 31 December 2008 the aggregate purchase price (including the option premiums) could increase up to A$56.3 million.

There will be no immediate changes in governance or management.

Click here to view the analysts' briefing.

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