Jemena stake could be sold
Goldman Sachs could be looking to sell a 40 per cent stake in Jemena, a key player in the gas and electricity distribution market, on behalf of Singapore Power.
With an estimated value between $5 billion to $6 billion, the stake represents a substantial portion of Jemena - the largest gas distributor in New South Wales.
Global Infrastructure Partners (GIP), fresh off a monumental $18.9 billion sale to BlackRock, is now eyeing the Jemena opportunity, having engaged in preliminary discussions with Goldman Sachs.
These talks reportedly signal a keen interest from GIP in expanding its portfolio within the Australian infrastructure landscape, although the firm has yet to confirm its intentions.
Jemena, which boasted a $301.3 million after-tax profit in the 2022 calendar year, holds approximately $11 billion in assets. Its portfolio includes the largest gas distribution network in NSW, the ActewAGL distribution partnership, an electricity network business, and the renewable energy group Ovida, showcasing a diversified and robust energy infrastructure platform.
The sale initiative comes after years of speculation and attempts by various bankers to secure a sell-side mandate from Singapore Power, with Goldman Sachs finally landing the role in September.
The anticipated auction for Jemena's stake is set to attract significant interest from various investment entities, underlining the asset's appeal as a monopolistic investment opportunity.