News: APA UPDATE 1-Australia's APA Group to buy local energy supplier's Pilbara portfolio for $1.10...

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Aug 23 (Reuters) - Australia's APA Group (APA) on Wednesday said it had entered into an agreement to acquire local energy supplier Alinta Energy's power assets in the Pilbara region of Western Australia in a deal valued at A$1.72 billion ($1.10 billion).

Alinta Energy, owned by Hong Kong-based Chow Tai Fook Enterprises, would be selling its Pilbara portfolio, which includes the Port Hedland and Newman power stations to the gas pipelines owner.

The acquisition comes at a time when the infrastructure owner is looking to expand its hold in the Pilbara region while shoring up more electricity generation and assets for its long-term future.

APA Group also plans to raise A$675 million through a fully underwritten pro-rata institutional placement to partly fund the acquisition, coupled with an A$75 million share purchase plan.

"The balance of the purchase price will be funded by new debt facilities established in connection with the acquisition," the company said.

Alinta's Pilbara assets include 900 megawatts worth of renewables and storage products under development, 1 gigawatt of long-term development opportunity and 300 kilometres of planned high voltage transmission lines.

($1 = 1.5567 Australian dollars)