Vales Point Power Station: Czech company Sev.en Global Investments buys Delta Electricity and its assets in multi-million dollar deal

The deal, reportedly worth $200 million, was finalised just days ago with state and federal government approval.

Sev.en chief executive Alan Svoboda said the purchase was critical to its plans to grow in Australia.

"The positive work culture and quality of the assets aligns with our investment objectives of adding further generation capacity to our Australian portfolio," he said.

"In doing so, Sev.en is also uniquely positioned to maximise the benefit to local communities as a dedicated long-term investor and operator.

"We are committed to support the energy transition by providing reliable power supply and backup capacity as needed."

A Delta Electricity spokesman said the finalisation of the sale makes it part of a global energy group.

"Sev.en have also recognised the significance of assets like Vales Point as an important part of the energy transition process by providing a reliable power supply and backup capacity as needed," he said.

"Sev.en have stated that Delta is an important part of its growth plans in Australia.

"Delta employees have valuable skills that Sev.en will be able to leverage in other potential acquisitions."

Sev.en's 100 per cent equity acquisition of Delta Electricity and its subsidiaries is the latest addition to its portfolio - including 100 per cent of the Salt Lake Potash project in Western Australia and a 50 per cent stake in InterGen N.V. through its interests in the Millmerran and Callide power stations in Queensland.

Vales Point provides 11 per cent of the state's electricity and four per cent of power in the national market.

Sev.en is actively pursuing opportunities to grow in the region.

Delta Electricity agreed to the sale of its 1,320 megawatt Mannering Park power station in September, in a deal that could see the plant open beyond the planned closure date in 2029.

A spokesman for the recently sold company said there is no change to the current closure date, but, Delta has noted announcements from competitors bringing forward closure dates of other plants.

"These announced closures have the potential to bring a greater reliance on remaining assets such as Vales Point which will be required to provide a reliable power supply while the transition to renewables continues," he said.

Delta Electricity bought Vales Point from the state government for $1 million in 2015.

In September, Delta Electricity's outgoing chair Trevor St. Baker said opportunities to grow the business would be "better accomplished" in Sev.en's portfolio.

"We continue to have a firm view that around the clock dispatchable generation will be necessary for the national electricity market well into the future," he said.

"The sale will facilitate this growth as Sev.en has shown a commitment to the sector and an ambition to expand, both in Australia and globally."

IN THE NEWS:

WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.