Bord Gais to issue sale memorandum to bidders
BORD Gais said it will issue an information memorandum to potential bidders for its energy business Bord Gais Energy but declined to give any details to the public. The sell-off is expected to raise between €1bn and €1.5bn.
Bord Gais said in February that it had begun the process to sell the company's electricity generating assets, including wind farms and the Whitegate power station in Cork, as well as the retail arm of the business that sells gas and electricity to 900,000 customers.
"We expect the sale to be concluded by the end of 2013," chief financial officer Michael O'Sullivan said yesterday.
Bord Gais Energy remains on track to become the first state asset to be auctioned off under the 'New Era' privatisation scheme.
Half of the cash will be used to pay off a share of the national debt and half is earmarked for job creation schemes.
Potential buyers have been told to get the information memorandum from executives at Royal Bank of Canada Capital Markets, who have been hired to handle the sale on behalf of Bord Gais.
Bord Gais Energy plans to increase its earnings before interest, tax, depreciation and amortisation to €150m in the next five years, the company said in a statement. Bord Gais Networks is not for sale.
The sale of Bord Gais Energy is expected to be followed by sales of some ESB power stations and the government shareholding in Aer Lingus. It is hoped to raise €3bn from the privatisation programme.