ENQUIRE HERE
 
< Back to News Archive

 
posted on:
October
21
2016

IPO prospect for Endeavour Energy sale

 

Source: SMH, 21 October 2016


A sharemarket float is an option being considered by the NSW government for the sale of its remaining electricity sector asset, with the formal process, which could yield about $4 billion, to kick off by year's end.


The government announced on Thursday the sale of a controlling 50.4 per cent interest in the state's largest power distributor, Ausgrid, to local superfunds IFM Investors and AustralianSuper for $16.19 billion which, after the repayment of $10 billion of borrowings, will raise a net $6 billion.


The sale is the second asset sold by the Baird government following the $10 billion sale of all of the equity in Transgrid, the state's high voltage operator, a year ago.
The earlier planned sale of Ausgrid to Chinese interests was blocked by the federal government.


The focus now shifts to the sale of Endeavour Energy with a sharemarket listing one of the options being reviewed.


A spokesman for the NSW Treasurer Gladys Berejiklian said the government will commence the sale process for Endeavour Energy before the end of the year. While no indication has been given of when the sale is likely to conclude, the government would be keen to bank the proceeds before the June 30 financial year end.


Read More HERE