US private equity giant Blackstone has expressed an interest in acquiring Bord Gáis Energy (BGE), which is being sold by the State.
Informed sources have told The Irish Times that Blackstone has received a copy of the information memorandum (IM) that has been prepared by the advisers to the sale of BGE.
Ten parties are believed to have sought the IM for the sale of BGE, which is expected to fetch about €1 billion for the State. Indicative offers are due next month with the process to finish by the end of the year.
Interested bidders are thought to include UK-listed company Centrica, which owns British Gas; Singapore infrastructure and investment group Keppel Corporation; France’s GDF Suez; SSE, the owner of Airtricity; Spanish group Iberdola; German energy company E.On; Energia owner Viridian; and a Dubai-based sovereign fund.
While Blackstone has several interests in the energy sector, its investments have tended to focus on infrastructure assets rather than retail businesses such as BGE.
Founded in 1985 and listed in New York, Blackstone is a leading global investment and advisory firm.
It has about 1,800 employees in 24 offices worldwide, while its portfolio companies employ more than 730,000 people between them.
According to its website, its various investment vehicles manage around $218 billion in assets.
It already has assets in Ireland, including an 18.6 per cent stake in Eircom, through its GSO and Harbourmaster units.
This makes it the biggest shareholder in Eircom. The investment group was a lead player in the consensual restructuring of Eircom last year and has representation on the company’s board.
In November 2012, it paid €67 million to acquire the Burlington Hotel in Dublin. Blackstone is expected to spend in excess of €16 million on refurbishing and rebranding the hotel, which is then likely to trade as part of the Hilton Group.
Five years ago, Blackstone acquired the Hilton Worldwide hotels empire for $26 billion.
No comment was available from Blackstone yesterday.
BGE is a dual-fuel, all-island business with more than 900,000 gas and electricity customers. With 234 megawatts (MW) of operating wind capacity, BGE also has one of the largest renewable energy portfolios in Ireland. In addition, the 445 MW Whitegate plant provides power for up to 400,000 homes.
NewERA, the agency advising the Government on the sale of State assets, has appointed A&L Goodbody as legal advisers and Barclays Capital as financial adviser on the BGE sale process.
NewERA is an arm of the National Treasury Management Agency.
Bord Gáis has hired RBC Capital Markets, a division of Royal Bank of Canada, as financial adviser, while McCann FitzGerald is acting as the legal adviser.
