The Citi-run sale of Brookfield’s Enwave business is expected to move into full swing next month when information memorandums are due to be sent out in the market.
Flyers are already in the hands of prospective suitors for the somewhat disparate energy infrastructure business that consists of retail energy distribution and gas pipelines.
It is understood the owners are open to a break-up of the operation.
Tas Gas generated $32 million in annual earnings before interest, tax, depreciation and amortisation last financial year and Enwave made $6m in EBITDA. The hope is to sell the business for somewhere between $300m and $500m.
Enwave designs, builds, owns and operates water, gas and energy networks and includes TasGas Retail and TasGas Networks, with more than 19,000 Australian customers.
Among parties expected to line up for the operation are the APA Group, CK Infrastructure, Alinta Energy and Jemena, as well as mid-market infrastructure funds such as Morrison, Palisade, AMP Capital and ICG.
The challenge for buyers is that all of the operations are unlikely to appeal to just one group, meaning consortiums will no doubt have to be formed or Brookfield will sell off parts of the business to different parties.
In particular, District Energy — a small part of the business offering shared building infrastructure services to clients — would probably attract a separate entity.
Meanwhile, it is understood Malakoff and adviser Rothschild will determine this week how to proceed with the sale of a stake in the Macarthur wind farm.
Indicative bids have been received and the expectation is that the next move will be for Rothschild to compile a shortlist.
Macquarie Infrastructure and Real Assets is understood to have submitted a bid, while early on groups such as Palisade, ICG and AMP Capital were expected to circle, although it is unclear as to how lofty the group’s price expectations remain.
The farm comprises 140 wind turbines in Macarthur, Victoria, and is described as the largest wind farm in the southern hemisphere.
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