China's State Grid invests in Australian assets

The State Grid Corporation of China (SGCC), the country's largest energy distributor, announced on Friday that it has signed an agreement with Singapore Power Limited to buy partial stakes in the latter's two Australian assets.

Under the deal, which was signed here on Thursday, the SGCC will purchase a 60-percent stake in SPI (Australia) Assets Pty Limited (SPIAA), a wholly owned subsidiary of Singapore Power, as well as a 19.9-percent stake in its sister company SP AusNet.

SPIAA is an energy infrastructure company that runs power distribution, gas transmission and distribution services in Australian states and territories including Victoria, Queensland, New South Wales and Australian Capital Territory.

SP AusNet, a provider of similar energy services in the state of Victoria, currently has 51 percent of stakes owned by Singapore Power, and the remaining 49 percent by public shareholders. It is listed on both the Australian Securities Exchange and the Singapore Exchange.

The SGCC said the stake acquisition will help optimize its overseas asset portfolio and boost its global influence and competitiveness.

The deal will add to the Chinese state-owned giant's list of overseas investments in recent years, including those in the Philippines, Brazil, Portugal and Australia.