Brookfield kicks off sale of Enwave Australia assets

10 May 2019 - 12:00 am UTC

Brookfield has called for expressions of interest for large parts of its Enwave subsidiary in Australia, including Tas Gas Networks and its District Energy businesses, sources said.

Brookfield adviser Citi sent out a flyer with details of the sale to possible interested buyers this week, according to two sources familiar with the matter. EOIs are due by the end of May. 

The sale includes Tas Gas, with EBITDA of about AUD 32m (USD 22.3m), and District Energy, with earnings of around AUD 6m. The total sale could fetch up to AUD 500m.

Enwave Australia includes Enwave Energy, Water West, Tas Gas Networks and Tas Gas Retail.

There was a possibility that Brookfield’s small utilities business, Flow Systems – which Brookfield took full control of in April after it was forced into administration – would be part of the sale, but it has been left out, the sources said.

Tas Gas Networks is the monopoly gas distributor in Tasmania to about 60,000 properties across the state. It is also the largest retailer of gas in Tasmania as well as a retailer of gas to 12,500 properties in 10 towns in regional Victoria.

District Energy provides heating and cooling as well as water and wastewater for buildings and precincts around Australia.

It has two precinct sites in South Australia – one for energy supply and one for water – and two in NSW where it supplies energy. In Victoria, District Energy supplies power to 11 regional towns. It also operates a 1.5MW CoGen powerplant in Tasmania.

As reported, the sale is likely to be of interest to mid-size and some larger funds, including QIC, Palisade, which has a stake in an undersea gas pipeline that connects with Tas Gas Networks, AMP Capital and Infrastructure Capital Group.

 

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