Stonepeak taps JPMorgan and Macquarie for $2bn Jemena contest

Jemena is potentially close to being sold by Singapore Power to Stonepeak. Picture: iStock

Stonepeak has hired JPMorgan and Macquarie Capital to compete for a 40 per cent stake in the $5bn Jemena energy business, with final offers for the operation due shortly.

It is believed that the contest for the asset, owned by Singapore Power, will probably conclude within a few weeks.

Stonepeak is yet to lob a final bid, but is believed to be the only suitor left in the race after GIP had earlier shown interest but walked away.

The asset is on Singapore Power’s books for $1.6bn but may achieve a $2bn price tag in a sale process being run by Goldman Sachs.

The outcome is expected to be either that Singapore Power sells to Stonepeak, or the asset is withdrawn from the market.

Jemena owns Australian energy infrastructure assets, including gas pipelines and gas and electricity networks in Victoria, NSW, Queensland and the Northern Territory.

It is 60 per cent-owned by China’s State Grid and 40 per cent by Singapore Power.

The understanding is that Stonepeak, which counts former Macquarie Capital media and telecoms banker Darren Keogh as a senior managing director, is keen to invest more in Australia and New Zealand and has aspirations to build a portfolio like that of listed infrastructure owner Infratil.

Last week it swooped on New Zealand’s fourth-largest retirement village operator Arvida with a $NZ1.3bn offer and it has been shopping around in the market here for data centre businesses.

It is understood that negotiations for Jemena are complex and have been moving slowly as Stonepeak works to assess the long-term outlook.

Matters to consider include the future of the LNG import terminal at Port Kembla in NSW which is being built by the Andrew Forrest-controlled Squadron Energy to plug looming gas shortages. The terminal would enable gas flow into NSW from Victoria.

Another issue is Treasury’s consultation on foreign tax and how that may impact matters from the Singapore Power side.

There have also been questions about whether Jemena has the gas reserves to support the pipelines, and whether they are economical.

The sale comes as energy sources and supplies remain high on the agenda in the political debate.

Meanwhile, there’s chatter in the market that the country’s only listed gas pipeline owner, APA, is in the market for a new top executive through executive search firm Heidrick and Struggles.

APA’s share price has fallen by about 20 per cent in the past year. It closed at $7.98 on Thursday. Its market value is just over $10bn – its lowest level since 2018.