Investment bankers in the renewable energy space may have their hopes dashed of gaining a major break over the summer period, with a raft of sales processes in the sector set to launch in January.
On Monday, Tilt Renewables indicated that its major shareholder, Infratil, was a potential seller of its 65.6 per cent stake in the $1.39bn listed renewable energy business.
Infratil hired Goldman Sachs after fielding approaches from offshore renewable energy players and Australian superannuation funds like IFM, Australian Super and QIC.
Meanwhile, New Energy Solar, believed to be one of the best renewable energy offerings currently in the market, has had parties sign confidentiality agreements in recent days in preparation to receive an information memorandum for the sales process.
It is understood that the competition will start in earnest in mid-January, when indicative bids are due before suitors put forward their binding offers. Among those expected to enter the contest are Iberdrola’s Infigen Energy, Palisade Investment Partners, Lighthouse Infrastructure, First Sentier and the Dutch Infrastructure Fund.
The listed New Energy Solar announced to the market in October that, following a strategic review, it had opted to sell its Australian solar farms, which are in a mature operational state. They include its 110 megawatt Beryl plant and 55MW Manildra facilities in NSW.
New Energy Solar currently has a $290m market value and owns 14 solar projects in the US, as well its portfolio in Australia.
Another offering is a 49 per cent stake in the Australian solar farm portfolio owned by Spain’s FRV that is expected to be worth about $500m. The Credit Suisse-run process was due to start this year, but it is understood the timetable has been pushed back, with a potential start date now after January. It will be interesting to see if investors gain comfort with investing alongside an overseas backer, namely Abdul Latif Jameel, and obtaining only a minority stake.
A further two solar assets are being sold by BlackRock, known as The Gretel Solar Portfolio through Azure Capital. They include the Hayman Solar Farm, which generates 60MW of power, and Daydream Solar Farm, which generates 180MW.
That process has now launched, with information memorandums in the market and first round bids due before Christmas.
Also up for sale from January through advisory firm Lazard is a 54 per cent stake in the $450m Ararat Wind Farm in Victoria, which is owned by Partners Group. The sales process is expected to start shortly and conclude by March. The owner of the remaining stake is OP Trust.
Elliott Green Power Australia is also expected to be on the market in 2021, while PwC has been hired to find a funding partner for the Clark Creek Wind and Solar Farm, 150km north west of Rockhampton.
The project is being developed by Goldwind Australia for owners Lacour Energy.
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