A consortium of Australian pension funds will pay $16.189 billion for 50.4 per cent of electricity company Ausgrid, the NSW government has announced.
The decision to accept an unsolicited proposal by Australian Super and IFM investors was announced by Premier Mike Baird and Treasurer Gladys Berejiklian on Thursday.
"This is another excellent result for the people of NSW after our successful $10.258 billion lease of TransGrid," Mr Baird said.
"Our poles and wires transactions are unlocking billions of dollars to fund new schools, hospitals, public transport and roads that will make a real difference to peoples' lives."
Ms Berejiklian said: "The NSW government is delighted to be entering into a partnership with IFM and AustralianSuper given their demonstrated track record in the management and long term investment in infrastructure assets."
The proposal was revealed in late September, just weeks after Chinese bids were blocked on national security grounds by federal Treasurer Scott Morrison.
The unsolicited proposal rules allow for a confidential approach to the NSW government with a unique proposal. The consortium argued its proposal was unique as it was an "all Australian" bid.
The government will now deal directly with the consortium, without going to tender.
The initial transaction for Ausgrid was blocked by federal Treasurer Scott Morrison in August.
Chinese-government owned State Grid Corporation and Hong Kong based company Cheung Kong Infrastructure were the sole bidders for a 99-year lease of 50.4 per cent of Ausgrid, expected to reap up to $14 billion.
But in making the decision, Mr Morrison said "national interest concerns" were paramount after receiving advice from the Foreign Investment Review Board.
This story first appeared on the Sydney Morning Herald
