Keppel Infra says parties expressing interest to buy undersea cable operator Basslink

Keppel Infrastructure Fund Management on Friday said it is undertaking a strategic review of its interests in the Basslink undersea electricity and telecommunications interconnector between Tasmania and mainland Australia.

Keppel Infra
Image for representation purposes only. Reuters

Keppel Infrastructure Fund Management on Friday said it is undertaking a strategic review of its interests in the Basslink undersea electricity and telecommunications interconnector between Tasmania and mainland Australia.

Basslink interconnector is owned by Keppel Infrastructure Trust (KIT), part-owned by the Singapore Government and listed on the Singapore Stock exchange.

Basslink Interconnector is the only electricity interconnector between Tasmania and mainland Australia.

The company is reeling under finanial due to a shutdown last year which coincided with record low dam levels servicing Tasmania's hydro-electric generators, plunging the state into an energy crisis.

Basslink came to loggerheads with its only customer, the state-owned Hydro Tasmania, during the cable outage which occurred between December 20, 2015 and June 12, 2016.

The cable operator said Hydro had stopped paying its cable fees as a result of the disagreement.

Bass Link interconnector has eight lenders, which are owed about $700 million.

KIT said it has received a number of enquiries from parties expressing interest to buy KIT's interests in Basslink.

To facilitate the strategic review, KIT will be appointing a financial adviser to evaluate the best possible option.

There is no assurance that any transaction will materialise from such strategic review or that any definitive or binding agreement will be reached, the company said.

Keppel Infra
Image for representation purposes only. Reuters

Keppel Infrastructure Fund Management on Friday said it is undertaking a strategic review of its interests in the Basslink undersea electricity and telecommunications interconnector between Tasmania and mainland Australia.

Basslink interconnector is owned by Keppel Infrastructure Trust (KIT), part-owned by the Singapore Government and listed on the Singapore Stock exchange.

Basslink Interconnector is the only electricity interconnector between Tasmania and mainland Australia.

The company is reeling under finanial due to a shutdown last year which coincided with record low dam levels servicing Tasmania's hydro-electric generators, plunging the state into an energy crisis.

Basslink came to loggerheads with its only customer, the state-owned Hydro Tasmania, during the cable outage which occurred between December 20, 2015 and June 12, 2016.

The cable operator said Hydro had stopped paying its cable fees as a result of the disagreement.

Bass Link interconnector has eight lenders, which are owed about $700 million.

KIT said it has received a number of enquiries from parties expressing interest to buy KIT's interests in Basslink.

To facilitate the strategic review, KIT will be appointing a financial adviser to evaluate the best possible option.

There is no assurance that any transaction will materialise from such strategic review or that any definitive or binding agreement will be reached, the company said.

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