Background
- ATCO Limited (ATCO or the Company) is a publicly-traded Canadian engineering, logistics and energy holding company based in Calgary, Alberta
- ATCO Australia, headquartered in Perth, was established in 2011 in response to opportunities in the Australian Market and the strength of the local economy
- ATCO engaged AE to advise on its strategic acquisition of Western Australia Gas Networks (WAGN), a natural gas distribution utility company that serves the City of Perth and surrounding areas
Our role
- Approach agreed target to initiate contact and build rapport
- Facilitate exploratory meetings and discussions to gauge receptiveness to approach and cultural alignment
- Build investment thesis and requisite internal support documents
- Indicative pricing analysis
- Draft and submit proposal / non-binding indicative offer (NBIO)
- Assist in project management of financial, tax, legal, strategic and commercial due diligence
- Consider funding requirements (soft sounding of brokers)
- Draft and submit final offer/ proposal
- Evaluate synergies, risks, issues, operating model and commence integration planning
- Negotiation of Transaction Documents, such as a Shareholders agreement
- Finalise and executive legal agreements, and announce transaction to shareholders
Outcomes
- ATCO’s subsidiary, Canadian Utilities Limited (TSC:CU), successfully closed its $1.0bn acquisition of 100% ownership of Western Australia Gas Networks (WAGN), involving the assumption of approximately $644m of debt
- The acquisition allows ATCO to achieve its strategic objective of tapping into the rapidly expanding Australian market, as WAGN connects more than 620,000 customers through 12,800km of pipeline and associated infrastructure