Before investing approximately $260 million to acquire the largest LPG retailer in New Zealand, First Gas needed a detailed understanding of the assets and operational capability of the LPG business they were considering purchasing.
The Challenge
First Gas Limited operates one of New Zealand’s largest gas transmission and distribution networks. Before investing approximately $260 million to acquire Rockgas – the largest LPG retailer in New Zealand, servicing over 88,000 customers – First Gas needed a detailed understanding of the assets and operational capability of the LPG business they were considering purchasing. In particular, First Gas needed in-depth advice around the acquisition of Rockgas’ Major Hazard Facilities in the context of new workplace safety legislation.
Our Approach
Advisian was selected to deliver this assignment based on our:
- Energy sector credibility
- Proven reliability
- Safety and risk expertise
- Local knowledge of New Zealand.
Our technical due diligence role in the project included:
- Assessment of detailed asset management and capital planning documentation
- Site visits to assess the external condition of plant and assets
- Due diligence report development and the issuing of reliance letters to the financial institutions involved in the acquisition.
