A Kuwaiti-backed infrastructure investor is speaking to fellow shareholders in an Australian network provider about selling down its equity stake.
Wren House, the investment arm of Kuwait Investment Authority, is speaking to fellow TransGrid investors about selling its 20% stake in the transmission network, according to sources.
The London-based investor has been planning the sale for almost a year, but this week kicked off talks with four TransGrid shareholders, said six sources familiar with the process.
The other TransGrid shareholders are CDPQ (25%), Abu Dhabi Investment Authority (19.99%), Utilities Trust of Australia (UTA) (20%), managed by Morrison & Co, and Spark Infrastructure with 15%.
The investors all have pre-emptive rights over the Wren House shareholding, meaning they can bid for the right to increase their stake in proportion to their existing holding.
Wren House is looking to appoint an adviser for the process.
Spark Infrastructure chief executive, Rick Francis, today declined to comment on whether the listed infrastructure fund would take up its pre-emptive rights at the company’s full-year results briefing.
But he did outline TransGrid’s “multi billion-dollar potential growth pipeline” that includes AUD 5.1bn (USD 3.4bn) of grid investments planned for New South Wales, where it is the sole transmission operator.