The State Grid Corp of China, the country's largest power distributor, signed an agreement with Singapore Power in Beijing on Wednesday to purchase part of the stock equity of the company's two subsidiaries, SPIAA and SP AusNet, in Australia.

The agreement allows State Grid to buy 60 percent of the equity of SPI (Australia) Assets Pty Limited (SPIAA) and 19.9 percent of SP AusNet.

SPIAA is a wholly owned power and gas distribution subsidiary of Singapore Power in Australia, covering the regions of Victoria, Queensland, New South Wales, and the Capital Territory.

SP AusNet mainly supervises power distribution and gas transport in Australia with 51 percent of its stocks held by Singapore Power.