Regulatory advisory for Maui gas pipeline acquisition
Colonial First State Global Asset Management (rebranded in 2019 to First Sentier Investors), an Australian pension fund, was approached to bid on the 299-km long onshore Maui gas pipeline by its owners. Following our previous advice to Colonial on its successful acquisition of Vector’s New Zealand gas transmission and distribution assets, Colonial engaged Castalia as its regulatory advisor for its bid on the asset.
How Castalia helped
Castalia provided regulatory due diligence to help Colonial determine its expected revenues for its valuation model, identified commercial strategies to maximize the asset’s value, assessed likely regulatory changes, and helped it engage with the two regulators. We also reviewed Colonial’s bid financial model for consistency with the regulatory approach applied by the Commerce Commission, one of the regulators.
The outcome of our work
Colonial successfully acquired the Maui pipeline for NZ$335 million and has since engaged Castalia on a wide range of regulatory and economic matters related to its successful acquisition