Indicative bids for Brookfield Infrastructure’s majority-owned Flow Systems are due late next week, Inframation understands.
A source who has seen the IM told Inframation the sale timeline for the multi-utility water services provider is opaque, with no indication if there will be a final bid round.
As reported, shareholders are hoping to hit financial close by the end of the year.
The source added that although it painted a “rosy picture” of the water provider, the IM was light in detail, so potential bidders still haven’t got their head around the company. As reported, Flow Systems is thought to be worth less than AUD 100m (USD 71.1m).
A sell side source told Inframation interest in the sustainable water and energy provider has been “exceptionally high“, but would not comment on whether those lining up include strategics, private equity or infrastructure funds.
KPMG are acting as advisors on the sale.
Brookfield owns a majority (55%) stake in Flow Systems through subsidiary Enwave Australia, with its other owners including company director and founder Terry Leckie also selling up.
Flow Systems reported a 48% rise in income to AUD 40.3m in the last financial year ending 31 December 2017. But profit after tax fell 58% to AUD 1.6m last year, due to hikes in construction and operating costs, according to documents filed with the Australian Securities and Investments Commission.
Self-declared as ‘Australia’s first sustainable water utility’, Flow Systems provides drinking and recycled water as well as wastewater services. It also provides thermal energy including bespoke thermal networks for new housing developments, mostly across New South Wales and Queensland. Alternative gas networks for new developments, bringing its synergies with Brookfield, owner of Tasmania gas retailer, Tas Gas, is also among its offerings.