Global Infrastructure Partners (GIP) and Stonepeak are among the bidders for Singapore Power’s 40% stake in Jemena in a potential deal that could value the Australian energy group at over $10 billion, two sources with knowledge of the matter said.
The infrastructure investors were among the parties that submitted first-round bids which were due in June, the sources said, declining to be named as the matter was confidential.
A second round of bids was expected to be held this month or in August. A deal could be completed by the fourth quarter of this year if negotiations go well, one of the sources added.
Jemena is the brand name of the asset business of SGSP (Australia) Assets Pty Ltd.
Singapore Power had hired Goldman Sachs last year to find a buyer for its 40% stake in Jemena, according to the sources.
GIP, Stonepeak, Jemena and Goldman Sachs declined to comment. Singapore Power, an energy utility company wholly owned by Singapore’s state investor Temasek, did not respond to a request for comment on Friday.
The sale comes as the Asia Pacific sees growing investor interest in infrastructure assets as the region rapidly urbanises, energy demand grows and its population becomes increasingly affluent and digitised.
Jemena owns and operates a diverse portfolio of energy assets across northern Australia and on the east coast, according to its website.
In 2022, it owned assets worth A$12.4 billion ($8.39 billion), with sales revenue at A$1.8 billion, according to its investor presentation slides dated November 2023 shared on its website.
It added in the slides that it had a total capitalization of over A$12 billion.
Besides Singapore Power, Jemena is 60% owned by State Grid Corporation of China, the largest power grid constructor and operator in the world, the slides showed.
Reuters