Industry Funds Management has managed to expand its infrastructure investment footprint on the back of the liquidity issues confronting Allco announcing today that it had reached agreement to take over Allco’s equity position in the purchase of US generator, Consolidated Edison Inc.
IFM and Allco on December 10 announced that they had entered into purchase agreements with Con Edison to acquire a portfolio of gas-fired electricity generating plants in the north east US.
The purchase will be completed by a newly-created company called the North America Energy Alliance, which was originally structured as a joint venture between IFM, on behalf of IFM International Infrastructure, and Allco.
Allco’s shares were suspended on the Australian Securities Exchange on February 13 and following that suspension Allco approached IFM to request that it be released from its obligations within the transaction and to transfer all its equity to IFM International Infrastructure.
Commenting on the arrangement, IFM chief executive Damian Moloney said that while IFM was disappointed to lose Allco as a partner, it was pleased to have increased its investment in the Con Edison portfolio at an attractive price.
