Andrew Forrest, Mike Cannon-Brookes challenged by external bids for Sun Cable

Rivals Andrew Forrest and Mike Cannon-Brookes face an outside challenge for control of energy company Sun Cable amid ‘strong interest’ from investors.

Andrew Forrest is in a battle for control of Sun Cable. Picture: Matt Jelonek/AAP Image

Business titans Andrew Forrest and Mike Cannon-Brookes face external competition in their battle for control of embattled renewable energy developer Sun Cable, with administrators revealing the business has generated strong interest from investors.

Administrators FTI Consulting did not disclose how many bids it received as part of the first stage of the sale process, but confirmed it had shortlisted a number of potential buyers, including groups that were not existing Sun Cable shareholders.

Dr Forrest has spoken publicly about the bid made by his renewable energy company Squadron Energy, describing it as a “fair bid” at last week’s AFR business summit, and saying he was “comfortable whichever way it goes”.

Mr Cannon-Brookes’ Grok Ventures, another major shareholder in Sun Cable, is also interested in acquiring Sun Cable, but has a very different vision for the company and its massive $30 billion solar energy project in the Northern Territory.

But administrators on Wednesday confirmed it wasn’t a two-horse race, with multiple parties still in the mix.

“The voluntary administrators of Sun Cable are pleased to confirm that the Sun Cable sale process has elicited strong interest in the business, with non-binding indicative offers for Sun Cable having been received from multiple parties,” FTI said in a statement.

Mike Cannon-Brookes. Picture: Supplied

“The shortlisted bidders include a range of potential buyers, including parties that are not existing Sun Cable shareholders.”

FTI and its adviser Moelis is seeking to progress the shortlist with binding proposals due by the end of April, and a deal expected to be struck by the end of May.

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.

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.

At last week’s AFR business summit, Dr Forrest questioned Mr Cannon-Brookes’ capacity to oversee the ambitious project.

“Mike is a great tech guy, but that doesn’t automatically qualify as an industrialist,” he said.

“They are worlds apart.”

He also hit out at the operation of Sun Cable, criticizing its use of what he described as “palatial offices”.

“Their five offices were more palatial than anything Fortescue has ever had,” he said.

“It was just all wrong. You don’t need huge extravagant offices. We were explaining this all the way through. You don’t fix anything by adding to the capital costs.”

While Squadron sees value in the solar farm, its land access arrangements and approvals, Grok is still pushing for the export play.

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.

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.