KWM advises Commonwealth Government on Snowy Hydro acquisition

King & Wood Mallesons (KWM) advised the Commonwealth Government (Department of Finance) in relation to the purchase by the Commonwealth of the shareholdings of the States of NSW and Victoria in Snowy Hydro Limited (SHL). 
 
SHL owns and operates the Snowy Mountains Hydro-Electric Scheme, and is presently owned 58% by NSW, 29% by Victoria, and 13% by the Commonwealth. 
 
The Commonwealth has agreed to purchase the States' shareholdings for $6.231 billion in total, based on an agreed enterprise value for SHL of $7.8 billion. The terms of the transaction include undertakings from the government parties in relation to the future operation of the Scheme, including continued public ownership and various regulatory assurances. The States will apply the sale proceeds to productive infrastructure projects.

The KWM team is being led by Partners Tim Bednall and Stephen Jaggers, assisted by Partners Debra Townsend, Dominic Bortoluzzi, Louis Chiam and Wayne Leach. Legal support is provided by Special Counsel Stephen Mason, Jason Barnes and Stuart Courtney, and Senior Associates Elliott Dunn, Anna MacFarlane and Jim Tapp.

Commenting on the appointment Partner Tim Bednall said: "We are delighted to have had the opportunity to work with the Commonwealth on this significant transaction for this iconic piece of Australian infrastructure." 
 
The deal will facilitate the implementation of "Snowy 2.0", the proposed expansion of the pumped hydro capability of the Snowy Scheme, under which a new 2,000 megawatt underground hydro power station and associated facilities are planned to be constructed to generate power by recycling water pumped from existing Snowy Scheme water storages. 
 
The matter is also subject to the approval of the Victorian Parliament, and the passage of a Commonwealth appropriation bill. Completion is expected by 30 June 2018, subject to those approvals.