QIC buys APA pipeline for A$400m

The Australian investment manager has bought the Moomba Adelaide Pipeline System, which APA Group was forced to sell after taking over the Hastings Diversified Utilities Fund.

QIC Global Infrastructure, part of Queensland Investment Corporation (QIC), has acquired the Moomba Adelaide Pipeline System (MAPS) from APA Group – Australia’s largest natural gas infrastructure business – for A$400.6 million (€319.8 million; $417.7 million). 
 
MAPS was acquired by APA as part of its A$1.4 billion acquisition of a controlling stake in the Hastings Diversified Utilities Fund in October last year. As part of the deal, APA was instructed by the Australian Consumer and Competition Commission (ACCC) to divest the asset. 
 
Financial close on the sale of MAPS to QIC is expected at the end of this month, subject to QIC receiving a green light from the ACCC as an approved purchaser of MAPS.   
 
MAPS is a 1,184-kilometre pipeline system serving South Australia, with the main part of the network running from the gas exploration and processing town of Moomba in central Australia to South Australia’s capital city, Adelaide. The pipeline also runs to the South Australian towns of Port Pirie, Whyalla and Angaston. 
 
MAPS is described in an APA Group press release as a “complete operational business” with a management team and employees responsible for the commercial and operational management of the asset. 
 
APA Group acquired the Hastings Diversified Utilities Fund from Australian fund manager Hastings Funds Management after a protracted takeover battle with Pipeline Partners Australia (PPA) which was dubbed the “Battle of Hastings”. PPA included Canadian pension the Caisse and the Utilities Trust of Australia, a Hastings-managed fund. 
 
QIC Global Infrastructure was established in 2006 to manage investments on behalf of superannuation funds and sovereign wealth funds. It manages around A$7 billion for clients in energy and water, airports, rail stock, car parks, toll roads and ports in Australia, New Zealand, the US, the UK and mainland Europe.