For $1.690 million Alinta will acquire a diversified portfolio of gas infrastructure and power generation assets, including three strategically located gas pipelines and three gas fired power stations in Australia, and one gas fired power station in New Zealand.

"This acquisition secures a quality portfolio of energy infrastructure assets, offering both a stable and secure earnings stream and strong volume growth potential, particularly from the pipeline assets on Australia's east coast." Alinta CEO Bob Browning said.

In July 2003, Alinta took part in the acquisition of Aquila's energy assets with United Energy and AMP Henderson, which promoted the company to the position of operator, manager and part owner of regulated energy assets worth around $4 billion.

A sale price of around $400 million yielded a range of assets to Alinta including a 34% equity interest in United Energy Limited's Victorian electricity network, a 19.9% equity interest in Multinet Gas, the largest gas distributor in Victoria, and the non-distribution assets of United Energy.

Browning added that the acquisition of the Duke assets will strengthen Alinta's position as one of Australia's leading energy infrastructure companies, expand its portfolio of gas and electricity assets and operations across five states of Australia and New Zealand.

The acquisition also compliments Alinta's development of cogeneration plants and the recently announced wind farm project in Western Australia.

Alinta now intends to invite shareholders to vote on a proposal to convert from an investment in a single company structure to an investment in a stapled security structure comprising a share in Alinta and a unit in the Alinta Infrastructure Trust.

The proposed restructuring would benefit Alinta shareholders by facilitating the distribution of free cash; enabling Alinta to leverage its core expertise in managing and operating energy infrastructure assets while maintaining a strategic stake in those assets; and providing Alinta with the flexibility to diversify and grow its asset base and an efficient structure for ownership of the assets.

Alinta is proposing to fund the acquisition by an underwritten share placement to institutional investors via an underwritten renounceable rights issue to shareholders and an increase in debt facilities and utilisation of internal cash resources to fund the balance.