Andrew Forrest’s Squadron Energy tables bid for Sun Cable as first offers draw to a close
Andrew Forrest has tabled his bid for Sun Cable, setting the scene for a high-profile battle for control of the embattled renewable energy developer.
The two heavyweights behind competing bids for embattled renewable energy developer Sun Cable remain locked in a battle for control as first round bids draw to a close.
Administrators of Sun Cable, FTI Consulting, have confirmed non-binding indicative offers are due “in the next week or so” following a change to the original plan to close bids on Monday.
A spokesman for Andrew Forrest’s Tattarang confirmed on Monday it had already submitted its offer to take over Sun Cable and its massive $30 billion solar energy project in the Northern Territory, pitting it against Mike Cannon-Brookes’ Grok Ventures, which is also interested in acquiring the company.
The two investors, both currently major shareholders in Sun Cable, remained tight-lipped on the details backing up their bids, while FTI declined to comment on whether any other parties had lobbed competing offers.
Sun Cable fell into administration in January following a dispute between its two high-profile backers over the company’s funding arrangements and the vision for its flagship project.
The solar project in the Northern Territory, known as Australia-Asia PowerLink (AAPowerLink), is designed to become the world’s largest solar energy infrastructure network.
It includes a 20GW solar farm near Tennant Creek, backed with up to 42GWh of battery storage and a high-voltage transmission line to Darwin.
Power would then be sent to Singapore via a 4200km sub-sea cable - the longest of its kind in the world.
The project had widespread backing from the federal government and received support from Scott Morrison, with Indonesia approving the route of the project through its territorial waters.
However Dr Forrest has made it clear he plans to ditch exporting power via the subsea cable if he wins control of the company, preferring its use domestically to produce green hydrogen or ammonia.
While Squadron sees value in the solar farm, its land access arrangements and approvals, Grok is pushing for the export play.
Investment bank Moelis is managing the sale of Sun Cable, which employs 121 staff across Australia, Indonesia and Singapore.
A final investment decision for the first stage of AAPowerLink is expected next year. The project would create more than 1500 jobs during construction, 350 operational jobs and 12,000 indirect jobs, and would start supplying energy to Darwin in 2026.
Soon after their appointment in January, Sun Cable’s administrators secured $65 million in short-term funding from Cannon-Brookes. It was expected to cover the company’s bills for three months while a buyer was sought to take over the business.
FTI is seeking binding proposals by the end of April, and is expecting to finalise a deal no later than the end of May.
While the full list of Sun Cable’s creditors is yet to be released, the only creditor owed more than $1m is sub-sea surveying company Guardian Geomatics, which claims to be owed$10.2m.
Other investors in the company include Xero founder Craig Winkler, NextDC chief executive Craig Scroggie and Eytan Lenko, chief executive of Boundless Earth.
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