Morrison extends PIP I fund auction as AMP bows out

10 March 2020 - 12:00 am UTC

Trans-Tasman investor Morrison & Co. has postponed the final bid deadline for the sale of its Public Infrastructure Partners I (PIP I) fund to the middle of April after shortlisted investors dropped out of the deal, four sources familiar said.

AMP Capital, favoured to win the auction, ended its bid for the six assets in the fund more than a month ago, they added.

The shortlist is down to two Korean bids – one led by KDB KIAMCO and advised by ICA Partners, and another by a Korean Teachers Credit Union consortium advised by Olirek – the sources said. The original deadline for the bids was later this month.

An investor behind KDB KIAMCO’s bid dropped out, the sources said, adding that a different investor is now in place.

Two of the sources said that all bidders were not treated equally in an attempt to level the playing field with AMP Capital, which has dominated brownfield PPPs and won all recent sales for such assets in Australia and New Zealand. 

They added that the amount of due diligence required to assess a complex set of relatively small assets as well as the length of the process was also cited.

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