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Four groups from four continents bid in $6 bln Australian energy sale - source

Published 23/11/2015, 07:00 pm
© Reuters.  Four groups from four continents bid in $6 bln Australian energy sale - source

By Byron Kaye

SYDNEY, Nov 23 (Reuters) - Four groups of companies from four continents made binding bids in the expected $5.7 billion sale of the New South Wales state-owned TransGrid power transmitter, Australia's biggest privatisation, a source said on Monday.

The fact that all shortlisted groups bid for TransGrid, despite political discord about foreign asset sales, underscores the high global demand for Australian infrastructure, as roiling global equity and commodities markets drive investors to seek assets with regulated and predictable revenue.

Investment firms from Abu Dhabi, China, Canada, Kuwait and Australia were among the four groups chosen as preferred bidders by the government.

Even as Australian electricity use declines with the rise of rooftop solar, all four groups bid in a sale widely expected to fetch about A$8 billion ($5.7 billion).

TransGrid runs 12,000 kms (7,500 miles) of transmission lines from one side of the state of 7.5 million people to another. It is one of three energy firms the state plans to sell for some A$17 billion to fund an ambitious capital works programme involving building new train lines and roads.

All shortlisted consortia bid by the Monday deadline, said a source familiar with the deal, who asked not to be identified because of the sensitivity of the situation.

"The TransGrid transaction process has already shown there is very strong market interest in regulated electricity distribution and transmission assets," said NSW Treasurer Gladys Berejiklian in a statement shortly before the Monday deadline.

Berejiklian added that she will advertise for initial expressions of interest for the second energy asset for sale, an electricity distributor serving 1.6 million Australians called Ausgrid, on Tuesday.

($1 = 1.3935 Australian dollars)

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