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Super funds buy Ausgrid stake for $16.2b

AAP logoAAP 20/10/2016 Lilly Vitorovich

Australia's biggest superannuation fund AustralianSuper and fund manager IFM Investors have bought a majority stake in Ausgrid for $16.2 billion, two months after Chinese investors were blocked from buying the NSW electricity network on national security concerns.

The two super funds - which collectively have about six million Australian members - have bought a 50.4 per stake stake in a 99-year lease of Ausgrid from the NSW Government.

AustralianSuper chief executive Ian Silk said the deal will maintain and enhance the Ausgrid network, which has 1.7 million customers, and will contribute to the long-term retirement savings of the nation's workers.

The remaining 49.6 per cent stake in Ausgrid will be retained by the NSW government.

In August, Federal Treasurer Scott Morrison rejected bids for Ausgrid from two Chinese companies on national security concerns.

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