Sydney’s Pacific Equity Partners is weighing a tilt at Powerco, the New Zealand energy distributor that is 33 per cent owned by the Queensland government.
Street Talk understands the private equity firm’s deal makers have been considering Powerco for their $1.4 billion Secure Asset Fund II, whose predecessor is an investor at smart meters play Intellihub and West Australian remote power business Zenith Energy.
Sources said PEP’s interest in Powerco was “very early stage”, and there was no certainty it would table a non-binding indicative offer. PEP is taking counsel from Jarden’s infrastructure bankers, although the investment bank has not been formally mandated.
The Queensland government has put its stake on the market and is being advised by Barrenjoey. First-round bids are due in five weeks, sources said on Tuesday.
PEP’s interest in Powerco comes as other prospective bidders – and bankers hopeful of securing buy-side advisory gigs – are keeping their powder dry.
That’s because ASX-listed Dexus, which owns 42 per cent of Powerco and has pre-emption rights, has made it abundantly clear it is keen to take up QIC’s 33 per cent stake.
Dexus has hired RBC Capital Markets, completed a lap of meetings to line up co-investors for the tilt, and initiated discussions with Powerco’s third investor, Australian Retirement Trust, which owns 25 per cent, to join the cause.
Read the full story tomorrow and more on the Street Talk page.
City Chic is expected to raise about $25 million from investors and has sold its American brandAvenue to a cashed-up offshore buyer as it seeks to reset the business after a torrid few years.
Jersey-based CleanTech Lithium, currently housed on London Stock Exchange’s AIM with Phil King’s Regal Funds Management as a 15 per cent shareholder, is preparing a $100 million ASX listing.
HESTAhas cut a $250 million cheque for Stafford Capital Partners’ PE unit, which has co-invested in deals like Orange Hire.
On Monday night, an institutional investor launched a $1.1 billion block trade in Fortescue at a 6 per cent discount to last close, via JPMorgan.
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