Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

RPT-Strong field makes it to first base in $12 bln Australian energy sale

Published 28/08/2015, 08:08 am
© Reuters.  RPT-Strong field makes it to first base in $12 bln Australian energy sale
UBSN
-
DBKGn
-
1038
-
AST
-
SPK
-

(Repeats story published late Thursday; no changes to text)

By Byron Kaye

SYDNEY, Aug 27 (Reuters) - A half dozen groups of companies from four continents placed indicative bids by a Thursday deadline for an electricity transmitter in Australia's most populous state, a source told Reuters, a milestone in a record $12 billion privatisation sale.

The high number of bidders suggests appetite for Australian infrastructure with regulated and predictable revenue has been unaffected, perhaps even helped, by roiling global equity and commodities markets which have sent company profits and shares plummeting.

New South Wales government-owned TransGrid, which runs 12,000 km (7,500 miles) of transmission lines from one side of the state of 7.5 million people to another, meanwhile has its earnings secured by a national energy regulator which approves its fees five years in advance.

"A strong field of parties have lodged indicative bids for the long-term lease of TransGrid," NSW Treasurer Gladys Berejiklian said in an email statement without saying how many parties bid and without identifying any bidders.

TransGrid is one of three assets expected to fetch a total A$17 billion in the sale.

A source with direct knowledge of the process told Reuters that five consortia bid and that the status of a sixth, including another electricity company, Ausnet Services Ltd AST.AX , Singapore Power and government-owned State Grid Corp of China STGRD.UL was uncertain.

An Ausnet spokesman confirmed the company had previously lodged a formal expression of interest but declined comment further.

Other bidders included Australia's IFM Investors, an investment fund owned by 30 pension funds, with Queensland state-owned investment fund QIC, the source said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Another consortium to bid was Australia's Hastings Funds Management, Australian electricity firm Spark Infrastructure SPK.AX , sovereign fund Abu Dhabi Investment Authority and Kuwait's Wren House Infrastructure, with Canadian pension fund investor Caisse de depot et placement du Quebec, the source said.

A fourth bidder was Canadian pension fund investor Borealis, the Canada Pension Plan Investment Board and AustralianSuper Pty Ltd, the source said.

Infrastructure fund Global Infrastructure Partners and China Southern Power Grid Co Ltd CNPOW.UL joined up for a bid and Hong Kong's Cheung Kong Infrastructure Holdings Ltd 1038.HK bid solo, the source added.

State treasurer Berejiklian did not say when she would make a shortlist of preferred bidders, but said the government "will now move to shortlist qualified parties for the lodgement of binding bids which will be due in the coming months".

Investment bank UBS AG UBSN.S , which Berejiklian hired to run the sale, along with Deutsche Bank (XETRA:DBKGn), was not immediately available for comment. ($1 = 1.4006 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.