TPG to sell stake in $4bn Alinta Energy

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TPG to sell stake in $4bn Alinta Energy

US private equity firm TPG Capital has announced plans to sell the Australian power company Alinta Energy for up to A$4 billion.

In September 2010, TPG Capital announced the agreement to acquire a 30% stake in Alinta Energy for a total consideration of A$650 million. Last year TPG Capital refinanced its loans to the company recovering A$270 million.

Alinta Energy is a gas and electricity retailer based in Sydney, Australia. It has over 700,000 residential, commercial and industrial energy customers. Alinta Energy's 2500MW electricity generation portfolio includes:

  • Port Hedland Power Station
  • Newman Power Station
  • Pinjarra Power Station
  • Wagerup Power Station
  • Port Augusta Power Station (Northern and Playford)
  • Braemar Power Station
  • Bairnsdale Power Station
  • Glenbrook Power Station New Zealand

Latest sales of Australian power assets have not attracted much interest from investors. This is due to the fact that, according to the australian energy regulator, the National Electricity Market (NEM) electricity consumption is decreasing from its pick of 210.5 Twh (Terawatt hours) in 2008-2009 to 193.6 Twh in 2013-2014.

GDF Suez is also seeking to sell a 30 percent stake in its Australian electricity generation and retail business. In mid June we reported that the firm hired Deutsche Bank to find a buyer for around 30 per cent of its International Power (Australia) Holdings (IPAH) unit. GDF Suez will retain a stake of around 40 percent in IPAH following a potential deal.

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