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AGL, Shenhua vie for MacGen plants


Source: Financial Revew, 21 October 2013


AGL Energy and China’s Shenhua Group have firmed up as the lead contenders for Macquarie Generation, the largest NSW power producer, but sources say bids are likely to fall short of the $2.1 billion book value.

Queensland-based ERM Power is also expected to lodge a preliminary offer by Monday’s deadline, although ERM’s modest size is expected to limit its competitiveness in the process.

Bids from Thai-controlled RATCH-Australia, partly owned by Transfield Services, and a potential second power industry player from China are possible but less certain, sources said on Sunday.

MacGen, which produces about a quarter of NSW’s electricity, is the biggest asset on offer in this round of the state’s power sell-off, which is targeting $3 billion of proceeds to fund infrastructure such as schools and hospitals.

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