Bord Gáis Energy to be sold to Energy Consortium
The Minister for Energy has announced that the government are to accept a bit of up to €1.12 billion for Bord Gáis Energy. The minister approved the sale with Minister for Public Expenditure and Reform, Brendan Howlin. In November 2013 a number of bids proved unsuccessful and did not meet the price sought by the government, which had place a value of €1.5 billion on the company. The consortium comprises of Centrica plc, Brookfield Renewable Power Inc and iCON Infrastructure.
The sale is expected to be signed in 2014 with Bord Gáis Éireann (BGÉ) and the consortium. BGÉ will continue to work with trade union representatives and its employees on matters arising from the sale.
The sale agreement should be completed by the end of the first half of 2014 once all regulatory and merger approvals are received. The planned sale will need to be approved by the Competition Authority and CER.
The ministers said: “We are pleased with this development, which has led to materially improved value being offered and the selection of a preferred bidder. Each consortium member brings with it deep industry experience and significant financial strength to support the continued investment in the business. The entry into the all-island energy market of international strategic investors is a strong vote of confidence in the market, the Irish economy and in the Bord Gais Energy business and its employees. The successful conclusion of the sale will help provide additional funding to enable investment in infrastructure and jobs. The Departments and NewERA will continue to work with Bord Gáis Éireann to complete the sale of Bord Gáis Energy in early 2014, in accordance with the recently enacted Gas Regulation Act”.
Rose Hynes, the Chairperson of Bord Gáis Éireann, added “The sale process has now reached an important milestone with the appointment of a preferred bidder. The company will continue to work with staff, unions and relevant Government departments to complete the process by early 2014”
Centrica are involved in British Gas, Centrica Storage, Centrica Energy and Direct Energy. Brookfield Renewable Power Inc has a large renewable energy operation in the Americas. iCON Infrastructure is involved in the energy sector across the Americas and Europe.