The owners of Energia Group are looking for advisers to sell the Irish utility in a deal that could value it at up to $3 billion including debt, two sources with knowledge of the deal said.
The sale process by infrastructure fund I Squared is expected to begin after the summer, subject to market conditions, the sources said on condition of anonymity because the information is not public.
I Squared acquired Energia in 2016 for 1 billion euros ($1.08 billion) and unsuccessfully tried to sell it in 2018 and 2020.
The fund is betting that Energia’s core earnings growth and interest for integrated utilities with a diversified portfolio of renewable and conventional power will draw buyers, one of the sources said.
I Squared declined to comment on Wednesday. Energia Group could not immediately be reached for comment.
Energia owns onshore wind farms with a capacity of 309 MW across the Republic of Ireland and Northern Ireland, 747 MW of combined-cycle gas turbine (CCGT) plants in Ireland, and supplies gas and electricity to nearly 800,000 clients, according to its website.
Infrastructure investors or utilities with a positive outlook on Irish macroeconomic perspectives are likely to be potential bidders, the sources said.
Energia, which had 1,111 employees as of Sept. 30, is also expanding into the data-centre business with a project in Dublin.
The company reported core earnings (Ebitda) of 145.8 million euros ($158.2 million) for the first half of the year, and has a total net debt of 336 million euros. It completed the refinancing of two debt emissions in July, replacing them with 600 million euros senior secured notes due in July 2028.
Source: Reuters.com