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CORRECTED-Australia's Origin appoints Macquarie for potential gas demerger - sources

Published 13/05/2016, 09:58 am
© Reuters.  CORRECTED-Australia's Origin appoints Macquarie for potential gas demerger - sources
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(Corrects project name to Australia Pacific, not Asia Pacific, in second paragraph)

SYDNEY, May 13 (Reuters) - Origin Energy ORG.AX has appointed Macquarie Capital MQG.AX to advise on a potential spin-off of Origin's gas production businesses, including its $25 billion liquefied natural gas (LNG) plant, two sources familiar with the matter said on Friday.

Australia's largest energy retailer believes shareholders receive little benefit from owning an integrated business which includes a stake in the debt-saddled Australia Pacific LNG, power plants and a power and gas retail business, one source said.

The spin-off would shift debt to the gas production business and help protect Origin's investment-grade credit rating, which is currently one notch above junk, the source said.

Both sources declined to be named as the matter was confidential. Origin and Macquarie declined to comment.

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