WA-based brokers selected to jointly lead sale of AlintaGas shares

1/10/99
Three Western Australian-based brokerage houses have been selected to jointly lead the sale of shares in AlintaGas in order to maximise ownership in the gas utility by Western Australians.
Energy Minister Colin Barnett announced today that Hartley Poynton, Macquarie Porter Western and Paterson Ord Minnett had been selected as joint lead managers for the sale of the majority of equity in AlintaGas by public float.
Mr Barnett said submissions were received from more than 20 brokerage houses.
As lead managers, the three WA firms would be responsible for providing strategic advice to the AlintaGas Sale Steering Committee (ASSC) and for marketing shares to achieve the highest possible ownership by Western Australians.
The Coalition Government announced earlier this year it intended to sell AlintaGas by way of a Cornerstone Initial Public Offering (IPO).
A public float (IPO), the second stage of the two-phase sale process, is expected to take place in the second quarter of next year, and will see between 51 and 60 per cent of AlintaGas shares sold to householders and institutions.
It is expected there could be up to 100,000 shareholders in the privatised gas utility.
The float will take place following the sale of between 40 and 49 per cent of equity in AlintaGas to a trade purchaser by competitive tender.
"The three firms chosen as lead managers are among the largest and most respected stock brokerage firms in Australia and have a capacity to provide the technical and marketing expertise necessary to make the sale of AlintaGas a success for both investors and the State," Mr Barnett said.
He said Deutsche Bank, selected as the ASSC's strategic financial adviser, would manage the trade sale and serve as the overall co-ordinator of the IPO, but would not have a share selling role.
He said the ASSC expected to finalise the share marketing team in the near future by appointing up to five co-managers which, together with the lead managers, would market shares for the public float.
"The structure of the sale of AlintaGas strikes an appropriate balance between the interests of Western Australians and trade investors," Mr Barnett said.
Privatisation, in conjunction with the Government's gas deregulation timetable, will see a freeze on gas prices for households for this and next year, while for small businesses, real gas prices are expected to halve by 2007.
Media contact: Justine Whittome, (08) 9222 9699