KKR And Ontario Teachers’ Boost Takeover Offer For Australian Energy Firm

Spark Infrastructure Group advanced to a four-year high after Ontario Teachers’ Pension Plan Board and KKR & Co. made an improved takeover offer that values the company at about A$5.2 billion ($3.8 billion).

Sydney-based Spark, which owns stakes in electricity transmission and distribution networks in Australia and is developing plans for a massive renewable energy hub, will offer the consortium access for due diligence, it said in a Wednesday statement.

Ontario Teachers’ and KKR raised their offer to A$2.95 ($2.17) a share from a previous offer of A$2.80 after Spark rejected initial approaches as too low. The company rose as much as 6.9% in early trading Wednesday to the highest since June 2017, and was 4.6% higher as of 11 a.m. local time.

lectricity producers and utilities with exposure to clean power generation are winning new attention as investors position themselves for a global shift away from fossil fuels. The value of deals in renewable energy rose to $11.8 billion in the first half of this year, about 9% higher than the same period in 2020, according to BloombergNEF.

Spark holds 49% stakes in both South Australia’s electricity distribution network and Victoria Power Networks, a 15% interest in the TransGrid high-voltage electricity transmission network and owns the Bomen Solar Farm in New South Wales.

The company is aiming to develop renewable generation capacity of about 2.5 gigawatts in New South Wales to offset the closures of coal-fired power stations in the region.

Source : bloombergquint