Macquarie pulls pin on pursuit of big stake in EnergyAustralia
Macquarie has ended discussions with Hong Kong’s CLP Group over the possible purchase of a 50 per cent stake in EnergyAustralia, the country’s third-largest electricity and gas supplier, sources said.
CLP has been searching for an equity partner in EnergyAustralia for almost a year after the Hong Kong-listed company revealed it had recorded a $1 billion loss in the 12 months to December 31. It is also hoping to secure partners to help finance a transition away from fossil fuels.
EnergyAustralia’s Yallourn facility in Victoria is the country’s most carbon-polluting power station. Bloomberg
Macquarie had emerged as a front-runner, as first reported by The Australian Financial Review last month, in a process that is being run by Morgan Stanley. While talks with Macquarie have hit a roadblock, the company is in discussions with other interested parties. People familiar with those talks could not disclose their identities on Thursday.
EnergyAustralia declined to comment.
A deal for EnergyAustralia comes as the country’s major electricity and gas players usher through private investments and shake up their corporate hierarchy.
Origin Energy is awaiting regulatory approval for its $18.2 billion takeover by Brookfield Asset Management and EIG Partners, while AGL Energy is regrouping after a failed de-merger last year and an overhaul of its board forced by activist shareholder Mike Cannon-Brookes.
Alinta Energy, a smaller power generator, is also considering new partnerships. Its owner, Hong Kong conglomerate Chow Tai Fook, is on the lookout for its own financing partners and wants to reduce its exposure to Western Australian power plants and offshore wind farms.
EnergyAustralia, the third-biggest retailer of power and gas after
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