Gaelectric has selected China General Nuclear Power Corp (CGN) as preferred bidder for a majority stake in a 230-megawatt portfolio of wind farm assets, having beaten off rivals including Viridian's new owner.
The Chinese company, which raised $3 billion (€2.7 billion) almost two years ago in an initial public offering in Hong Kong, has been diversifying in recent times into renewable energy. Sources said on Wednesday evening that the company has entered exclusive talks to buy a controlling stake in the assets.
Gaelectric had been looking for some months for a partner or outright buyer of the assets. It is open to developing a long-term relationship with the CGN, according to Sparkspreads, an industry publication, which first reported news of the preferred bidder.
Gaelectric targets having 400 megawatts of assets in operation by the end of next year. While financial details of the Chinese group’s bid is not known, Gaelectric’s entire portfolio, including wind farms in development, has reportedly been valued at as much as €690 million.
A spokesman for Gaelectric declined to comment on the process.
Other bidders
US investment firm I-Squared Capital, which bought Northern Ireland energy group Viridian in April for about €1 billion, was also among bidders circling the assets. Viridian owns gas and energy supplier Energia in the Republic.
News of the preferred bidder comes weeks after Gaelectric picked Barry Gavin (50) as its next chief executive, succeeding fellow co-founder of the company, Brendan McGrath. Mr McGrath (68), whose brother Eamonn is the third founding shareholder of the group that was established in 2004, will remain with the company and head up "a number of special project areas", the company said in a statement last month.
Gaelectric counts Wexford beef baron Bert Allen among its main shareholders, while US private equity firm Lone Star took a significant minority stake earlier this year.
The three co-founders reportedly continue to own more than 40 per cent of the company, with further shares held by staff. The company’s other divisions include an energy storage business as well as bio-energy and solar energy units.
