Origin pushes on with pursuit of CWP Renewables

Origin Energy is keen on CWP Renewables but has little interest in Vocus.

Following Brookfield and EIG’s $15bn buyout offer for Origin Energy, the target is believed to be pressing on with its bid for the $4bn renewable energy business CWP Renewables.

But when it comes to Vocus Retail, it is believed to be side stepping the acquisition opportunity.

While there have been suggestions that Origin Energy was the frontrunner to buy Vocus Retail, it is now believed that its interest was lukewarm at best and was perhaps never a serious contender.

UBS, which worked with EIG on its bid for Origin’s gas business, had been working to sell Vocus.

Some believe that Origin would have been keen to buy Vocus Retail to secure more energy retail customers.

Another suggestion has been that CBA could buy the business.

Vocus is owned by Macquarie Asset Management, which bought the business for $3.5bn last year with Aware Super.

It has since merged its New Zealand division with 2 Degrees.

The Vocus Retail division has brands such as Dodo and Primus, and is expected to sell for a price of less than $500m.

Meanwhile, Origin is bidding for CWP with CDPQ and is being advised by Barrenjoey and ICA Partners.

Bids are due at the end of the month, and also in the competition are Queensland Investment Corporation with AGL Energy and Spanish energy giant Iberdrola.

CWP Renewables is owned by Partners Group and is one of the largest renewable energy power producers in Australia.

It has a portfolio of assets in operation or late-stage construction generating 1.1 gigawatts of power in NSW and Victoria and a 5GW development pipeline.

Customers include Sydney Airport, Snowy Hydro, Telstra and Transurban, with 70 per cent of revenues contracted to 2030 and average contract lengths of 13 years.