Landis+Gyr Divests Stake in Intellihub Joint Venture

Rhea-AI Summary

Landis+Gyr Group AG has announced the sale of its 16.8% stake in Intellihub Operations Pty Ltd for over AUD 310 million. The buyer, Brookfield, will collaborate with Pacific Equity Partners in this venture. The deal, expected to close by the end of February 2022, is projected to yield over USD 220 million for Landis+Gyr, although capital gain tax in Australia and stamp duty in Switzerland will partially offset this amount. Landis+Gyr's CEO highlighted the significance of this transaction in supporting the company's strategic growth in energy management solutions.

Positive

• Sale of 16.8% stake in Intellihub for over AUD 310 million.
• Expected cash proceeds of over USD 220 million post-transaction.
• Focus on reinvesting proceeds into strategic growth areas.

Negative

• Capital gain tax in Australia and stamp duty in Switzerland will offset transaction proceeds.

CHAM, Switzerland and SYDNEY, Dec. 20, 2021 /PRNewswire/ -- Landis+Gyr Group AG (SIX: LAND), a leading provider of integrated energy management solutions, today announced that its subsidiary Landis+Gyr Pty Ltd. has entered into an agreement to sell its ownership in Intellihub Operations Pty Ltd ("Intellihub") for over AUD 310 million in total.

The buyer, global asset manager Brookfield will become a strategic investor in Intellihub Group, the smart utility infrastructure-as-a-service company, alongside Pacific Equity Partners' (PEP) Secure Assets Fund. Brookfield will acquire Landis+Gyr's 16.8% interest in the company, diluted from approximately 20% after the conversion of a previously issued convertible note during the course of the transaction. The transaction is subject to various closing conditions, and once the transaction is completed, Intellihub will be jointly owned by Brookfield Infrastructure and PEP.

"The investment in Intellihub has been a great success for Landis+Gyr and we believe that Brookfield's investment in Intellihub comes at an appropriate time in the energy transition that Australasia is undergoing. While we look forward to continuing to partner with Intellihub as a customer in the future, we are focusing our efforts on the expansion of our position in smart infrastructure, grid edge intelligence and smart metering solutions and services", said Werner Lieberherr, Chief Executive Officer Landis+Gyr. "The proceeds of the sale will be reinvested in both organic and inorganic strategic growth areas to drive the decarbonization of the grid and empower utilities and consumers around the world to manage energy better."

In financial year 2020, Landis+Gyr had extended its supply contract with Intellihub until 2026, ensuring smart meter supply continues across their Australia and New Zealand meter provision business.

The Intellihub joint venture was formed in May 2018, with Landis+Gyr contributing both cash and its 2015 established Intellihub business for an approximate 20% stake in the joint venture.

Landis+Gyr expects the cash proceed for the transaction of over USD 220 million, at the time of closing, to be partially offset by capital gain tax in Australia and stamp duty in Switzerland.

The transaction is expected to close by the end of February 2022.

About Landis+Gyr 

Landis+Gyr is a leading global provider of integrated energy management solutions for the utility sector. Offering one of the broadest portfolios, we deliver innovative and flexible solutions to help utilities solve their complex challenges in Smart Metering, Grid Edge Intelligence and Smart Infrastructure. With sales of USD 1.4 billion in FY 2020, Landis+Gyr employs around 5,000 people in over 30 countries across five continents, with the sole mission of helping the world manage energy better. For more information, please visit our website www.landisgyr.com.

Media Contact
Melissa van Anraad
Head of PR                                                     
Phone +41 41 935 63 98 
Melissa.vanAnraad@landisgyr.com

Eva Borowski
SVP Investor Relations & Corporate Communications
Phone +41 41 935 6396  
Eva.Borowski@landisgyr.com

Investor Contact
Christian Waelti
Head of Investor Relations
Phone +41 41 935 6331
Christian.Waelti@landisgyr.com

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SOURCE Landis+Gyr

FAQ

What is the sale value of Landis+Gyr's stake in Intellihub Operations Pty Ltd?

Landis+Gyr has sold its 16.8% stake in Intellihub Operations Pty Ltd for over AUD 310 million.

What financial impact will the sale have on Landis+Gyr?

Landis+Gyr expects cash proceeds of over USD 220 million, subject to capital gain tax and stamp duty.

Who is buying the stake in Intellihub from Landis+Gyr?

Brookfield is acquiring the stake and will work alongside Pacific Equity Partners.

When is the sale of Landis+Gyr's stake in Intellihub expected to close?

The sale is expected to close by the end of February 2022.

What will Landis+Gyr do with the proceeds from the Intellihub sale?

The proceeds will be reinvested in both organic and inorganic growth areas.