Theodore Water Transition Timeline

November 2016 (completed)

Offer

Queensland Government provided Theodore Water Pty Ltd with a formal offer, identifying the proposed separation payment, assets to transfer and key terms for any final transfer.
Theodore Water Pty Ltd undertook the preliminary assessment of the viability of local management of the scheme based on the offer and re-assessment of the initial business proposal.
Theodore Water Pty Ltd advised the Queensland Government that it wished to proceed with the Local Management Arrangements process. This is not a final commitment to move to local management but an acknowledgement that there is a realistic prospect of customer support for the transition to locally owned and managed Theodore Water Pty Ltd.

September 2017 (completed)

Further Due Diligence

Further reviews and assessment by the Theodore Water Pty Ltd Board and consultants to determine the viability of local management including:

  • Detailed legal review
  • Engineering assessment (to update the review from Stage II)
  • Updated financial model
  • Updated business plan

By 31 October 2017 (completed)

Negotiation and signed transfer agreement

If the Theodore Water Pty Ltd Board is satisfied with the outcome of the further due diligence, the Board, on behalf of the scheme customers, will negotiate the final terms of the transfer agreement with the State Government. Based on this, a transfer agreement will be signed, setting out the terms of the transfer. The agreement will be subject to sufficient support from the scheme customers

By 31 March 2018 (completed)

Prospectus

Based on the due diligence, a prospectus-type document will be prepared. This will be certified by a range of professional advisors (legal, financial and engineering firms). The document will be sent to all scheme customers together with an offer to become a member or shareholder in the new local management entity. The offer will include a revised water supply contract which would govern the supply of water to customers in the scheme under local management.

1 June 2018 – 30 September 2018 (completed)

Prepare for Transfer

If sufficient customers elect to become members or shareholders, then the transfer agreement will be activated. The Theodore Water Pty Ltd Board will then prepare for the final transfer. This will include developing the necessary systems (eg financial, administrative etc) to take over operations.

1 October 2018 (completed)

Transfer

The transfer process will involve:
Scheme assets and separation payment being transferred into Theodore Water Pty Ltd shortly before the transfer date.
Shares being issued to customers.
The State Government’s share being cancelled.
At this time, the scheme assets will be held by Theodore Water Pty Ltd, an entity that will then be wholly owned and controlled by scheme customers.