Three bids in for two power plants in New South Wales
Related M&A Transactions
AGL Energy Ltd. (AGK), Marubeni Corporation and ERM Power Ltd. (EPW) have made final bids for two state-owned power plants being sold in Australia. The plants are managed by Macquarie Generation, a New South Wales (NSW) state-owned company.
An external spokeswoman for the state government said three bids were received last week, declining to provide more details.
According to sources, the deal could fetch more than A$1.5 billion ($1.3 billion).
China's Shenhua Group Corp. had also studies bidding for the company's two coal-fired power stations but it had dropped out of the process last year.
Macquarie Generation's Liddell and Bayswater plants account for about 26 % of the state's generation capacity. According to the government, proceeds from the sale will be used to finance other infrastructure.
This is not the first sale of state-owned assets in New South Wales. In April 2013, the state sold operating leases to Port Botany and Port Kembla. In May 2012, the state also sold the right to lease the Sydney Desalination Plant for A$2.3 billion.
AGL owns power generation assets in Victoria and South Australia states, operates renewable energy plants and runs a retail electricity business.
Brisbane-based ERM Power is the fourth-largest supplier of energy to the national electricity market. It has developed six gas-fired power stations and holds stakes in two plants in Queensland and Western Australia states.