Brookfield takes bids for Enwave Australia

17 July 2019 - 12:00 am UTC

Australian and New Zealand gas networks and fund managers have entered the race to buy Brookfield’s Tasmanian gas utility Enwave, according to sources.


Brookfield received at least three indicative offers by the Monday evening deadline, one of the sources told Inframation. The bidders include Australian Gas Networks, a unit of CK Infrastructure advised by Rothschild; First Gas, a New Zealand gas distributor held by First State Investments and advised by RBC Capital Markets; and Infrastructure Capital Group, the other sources said. 


Enwave – which mainly distributes and retails gas in Tasmania – is expected to fetch up to AUD 500m (USD 350m), based on EBITDA of AUD 38m, as reported. The company’s Australian businesses include Tas Gas Networks, District Energy, Water West and Tas Gas Retail. Enwave also owns 55% of Flow Systems, but Brookfield is taking full control of that business in a deal with its creditors after it was placed in voluntary administration late last year.


Tas Gas Networks is the monopoly distributor in Tasmania to about 60,000 customers. It is also the largest retailer of gas in the state, as well as a distributor and 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 services for three large apartment precincts in New South Wales and South Australia: Central Park and Mascot in Sydney as well as Tonsley Park in South Australia. 


Bidders are most interested in the network assets, but were instructed to make offers for the company as a whole, said the first source.


Canadian gas grid owner Atco as well as APA Group and Morrison & Co were also reportedly interested and received information memoranda.


Brookfield, CK Infrastructure, First Gas and ICG all declined comment. 


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