Australian energy infrastructure company APA Group has confirmed entering into documentation to potentially acquire Basslink that owns and operates the Basslink electricity interconnector between Victoria and Tasmania.

Under the proposal, Basslink will be acquired for AUD 773 million ($486.2 million).

Regarding the ongoing operations of the 370km high voltage direct current Basslink electricity interconnector, APA Group has also agreed documentation with Hydro Tasmania and the State of Tasmania.

The sale proceeds will be utilized to repay Basslink creditors, including APA’s existing senior secured debt of AUD 648 million ($407.5 million).

The acquisition is subject to several conditions precedent, including the approval of the deed of company arrangement proposed by APA.  The proposal will be placed for approval at the second meeting of creditors of Basslink, which is scheduled to be held on 18 October.

The 400kV DC Basslink electricity interconnector, which runs from Loy Yang in Gippsland, Victoria to Bell Bay in Northern Tasmania, entered into full operations in April 2006.

  APA Group, Australia, Basslink, Gippsland, Hydro Tasmania, Tasmania, Victoria