Reports related to this article:
Plant(s): View 1 related plant in PECWeb
Released December 13, 2013 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Less than three weeks after the Irish government said it was pulling the sale of the country's gas and electricity utility, Bord Gáis Energy (Cork, Ireland), it has just announced a 1.125 billion ($1.54 billion) deal to sell the company to a U.K.-led consortium.
The government announced that the preferred bidder for the company is a consortium comprising Centrica plc (OTC:CPYYY) (Windsor, England), Brookfield Renewable Power Inc, a subsidiary of Brookfield Asset Management (NYSE:BAM) and iCON Infrastructure. As preferred bidder, based on its revised bid, discussions will now start between parent company, Bord Gáis Éireann, and the consortium on finalising the terms of the sale agreement which is expected to be signed in early 2014. The government had hoped to get around 1.4 billion ($1.92 billion) for the company, which has 600,000 gas customers and 300,000 electricity customers. The sale does not include the gas pipeline network, which the government classed as vital national infrastructure.
At the end of November, the government announced that the bids received up to then were too low, after which revised bids improved.
The sale of Bord Gáis is a key part of the government's 3 billion ($4.1 billion) sale of state assets, which it agreed the European Union (E.U.) and the International Monetary Fund (IMF) when the country's financial bailout started three years ago.
With 234-megawatts (MW) of operating wind capacity, Bord Gáis Energy is one of the largest renewable energy providers in the country. It operates 135 turbines on 13 windfarms across eight counties - Kerry, Cork, Limerick, Clare, Tipperary, Kilkenny, Donegal and Tyrone. In addition, it owns and operates the 445 MW gas-fired Whitegate Power Plant in Cork, which generates enough power for up to 400,000 homes. Whitegate was commissioned in December 2010 and was Bord Gais's first power plant following its energy into the Irish electricity sector in 2009. For additional information, see December 10, 2010, article - Ireland's Whitegate Gas-Fired Plant Commissioned.
"We are pleased with this development, which has led to materially improved value being offered and the selection of a preferred bidder," explained Minister for Communications and Energy, Pat Rabbitte. "Each consortium member brings with it deep industry experience and significant financial strength to support the continued investment in the business. The entry into the all-island energy market of international strategic investors is a strong vote of confidence in the market, the Irish economy and in the Bord Gáis Energy business and its employees. The successful conclusion of the sale will help provide additional funding to enable investment in infrastructure and jobs." Rose Hynes, the Chairperson of Bord Gáis Éireann, added: "The sale process has now reached an important milestone with the appointment of a preferred bidder. The company will continue to work with staff, unions and relevant Government departments to complete the process by early 2014."
It is understood that Centrica will take over the Whitegate power plant while Brookfield will oversee the portfolio of windfarms. iCON Infrastructure will take over the company's Northern Irish assets.
View Plant Profile - 1046293
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The government announced that the preferred bidder for the company is a consortium comprising Centrica plc (OTC:CPYYY) (Windsor, England), Brookfield Renewable Power Inc, a subsidiary of Brookfield Asset Management (NYSE:BAM) and iCON Infrastructure. As preferred bidder, based on its revised bid, discussions will now start between parent company, Bord Gáis Éireann, and the consortium on finalising the terms of the sale agreement which is expected to be signed in early 2014. The government had hoped to get around 1.4 billion ($1.92 billion) for the company, which has 600,000 gas customers and 300,000 electricity customers. The sale does not include the gas pipeline network, which the government classed as vital national infrastructure.
At the end of November, the government announced that the bids received up to then were too low, after which revised bids improved.
The sale of Bord Gáis is a key part of the government's 3 billion ($4.1 billion) sale of state assets, which it agreed the European Union (E.U.) and the International Monetary Fund (IMF) when the country's financial bailout started three years ago.
With 234-megawatts (MW) of operating wind capacity, Bord Gáis Energy is one of the largest renewable energy providers in the country. It operates 135 turbines on 13 windfarms across eight counties - Kerry, Cork, Limerick, Clare, Tipperary, Kilkenny, Donegal and Tyrone. In addition, it owns and operates the 445 MW gas-fired Whitegate Power Plant in Cork, which generates enough power for up to 400,000 homes. Whitegate was commissioned in December 2010 and was Bord Gais's first power plant following its energy into the Irish electricity sector in 2009. For additional information, see December 10, 2010, article - Ireland's Whitegate Gas-Fired Plant Commissioned.
"We are pleased with this development, which has led to materially improved value being offered and the selection of a preferred bidder," explained Minister for Communications and Energy, Pat Rabbitte. "Each consortium member brings with it deep industry experience and significant financial strength to support the continued investment in the business. The entry into the all-island energy market of international strategic investors is a strong vote of confidence in the market, the Irish economy and in the Bord Gáis Energy business and its employees. The successful conclusion of the sale will help provide additional funding to enable investment in infrastructure and jobs." Rose Hynes, the Chairperson of Bord Gáis Éireann, added: "The sale process has now reached an important milestone with the appointment of a preferred bidder. The company will continue to work with staff, unions and relevant Government departments to complete the process by early 2014."
It is understood that Centrica will take over the Whitegate power plant while Brookfield will oversee the portfolio of windfarms. iCON Infrastructure will take over the company's Northern Irish assets.
View Plant Profile - 1046293
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
