Mallesons Stephen Jaques is acting as lead transactional lawyers to TRUenergy in its A$417 million agreed power station swap with AGL Energy. The swap features Australia’s largest gas fired power station, the 1,280 MW Torrens Island power station in South Australia.

The Mallesons team have negotiated and documented the sale arrangements and will continue to assist in managing the sale processes through to completion. The sale involves TRUenergy selling its Torrens Island power station to AGL for A$417 million. In return, AGL will provide its 180MW Hallett gas fired power station and pay A$300 million.

Specifically the Mallesons’ lawyers:

• devised a complex and detailed structure for the transaction, including corporate structuring and long-term energy supply arrangements
• ran the simultaneous sale agreement negotiations to an aggressive timetable
• resolved the specific regulatory issues associated with large electricity generating plants

Partner Louis Chiam led the team supported by partners Vishal Ahuja, David Perks and senior associate Paul Lingard. The team included Mallesons’ lawyers from Melbourne and Perth with expertise in electricity regulation and sale transactions for large infrastructure assets.

The Mallesons team worked closely with the TRUenergy transaction team, led by general counsel, Amanda Barnett and chief financial officer, Duncan Black.

Louis Chiam commented: “We are pleased to be working together with TRUenergy on this significant transaction. We advised China Light & Power back in 2005 when it originally acquired the merchant energy business, now known as TRUenergy. Our ongoing relationship gives us a detailed understanding of TRUenergy’s business and commercial objectives”.

Amanda Barnett commented: “Upholding its reputation, Mallesons project-managed the deal to perfection. The team provided valuable strategic input and technical expertise, and were terrific to work with.”

The transaction is likely to complete on 2 July 2007 pending Australian Competition and Consumer Commission (ACCC) clearance and other third party consents.