Investor Presentaiton
INFRASTRUCTURE FOR THE FUTURE
TRANSGRID - CHANGE OF SECURITYHOLDERS
Market valuations still do not reflect Spark Infrastructure's 15.01%
Wren House
Infrastructure (WHI)
stake sold to Ontario
Municipal Employees
Retirement System
(OMERS)
Spark Infrastructure notes the completion of the sale process for the 19.99% stake in TransGrid held by Wren House to OMERS of Canada
The process to sell WHI stake in TransGrid commenced in early 2020 and was offered to Spark Infrastructure and other securityholders in
accordance with the pre-emptive process under the Securityholders Deed
Spark Infrastructure declined to participate and notes that its 15.01% equity investment in TransGrid was purchased for $734.3 million in
December 2015
The implied equity value on a proportional basis represents an approximate compound annual increase of 4.0% p.a. in addition to an
approximate average distribution yield of 4.6% p.a. reflecting the improved business performance, growth in regulated and contracted
assets (RCAB) as well as the anticipated significant and attractive growth pipeline
The valuation acknowledges TransGrid's high quality business and once in a generation RAB and contracted growth pipeline
Valuation reflects
RAB and CAB growth
emanating from ISP
•
•
Regulated asset transactions have averaged an EV / RAB of 1.40x since 2007
Pipeline of growth opportunities is expected to double TransGrid's RAB in the current decade, assuming all ISP projects receive regulatory
approval and proceed
CAB is a material component of the EV; CAB is currently $728m (growth of 43.2% in last 12 months); continued growth in CAB expected to
be driven by connections of new large-scale renewable projects
Including CAB and valuing growth in RAB and CAB substantially adds to the headline RAB premium
Spark Infrastructure | Investor Presentation | August 2020
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