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Case Study

Pre-acquisition technical due diligence for First Gas

Pre-acquisition technical due diligence for First Gas

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.
The Advisian team’s calm and considered manner – and a willingness to work long hours – certainly helped us get the result reported today. We enjoyed working with Advisian and really appreciated their help in getting this acquisition across the line

The Advisian team’s calm and considered manner and a willingness to work long hours. It certainly helped us get the result reported today. We enjoyed working with Advisian and really appreciated their help in getting this acquisition across the line. - First Gas senior representative

The results

Advisian’s technical due diligence report was delivered to First Gas on time and the transaction was completed within the extraordinarily tight targeted timeframes. Our continuing productive working relationship with First Gas is helping to support the transition phase of the project and the ongoing capital growth planning programme.

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