Power generator and supplier Alinta Energy has confirmed its private equity owners TPG Capital are examining potential options that could see them sell out of the company.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
"Alinta Energy's owners are exploring future ownership options for the company," a spokeswoman in Sydney said on Wednesday.
"This process was always intended as part Alinta Energy's private equity ownership structure."
TPG declined to comment.
Alinta has about 800,000 residential and business customers and about a 2 per cent market share on the eastern seaboard, as well as its Western Australian business.
As revealed by Fairfax Medias earlier Wednesday, TPG has hired Lazard Australia to run an auction for Alinta, in a timetable that positions the sale ahead of the large "poles and wires" privatisations planned by the NSW and Queensland governments.
TPG is understood to be focusing on a potential trade sale for its biggest Australian investment, which it has controlled since a debt-for-equity swap in early 2011. The recapitalisation was part of a split of power and pipeline assets after a 2007 takeover by Singapore Power and Babcock & Brown funds.
Analysts estimate the value of Alinta at $3.5 billion to $4 billion.
Alinta chief executive Jeff Dimery said in August that Alinta was considering acquisitions that could broaden the portfolio of its busines, after achieving a more than doubling in core earnings over the past two years.
He said then that one of Alinta's key assets, the Flinders venture in South Australia, was now making a "marginal" profit compared with a "fairly substantial loss" three years ago, although the WA business remains the biggest contributor to profits.
Alinta is likely to be pitched to Australia's big three energy retailers - AGL Energy, Origin Energy and EnergyAustralia, which are strong on the eastern seaboard but lacking a presence in Alinta's stronghold of WA.
