KKR, Ontario Teachers’ and PSP Investments have begun shopping around Spark Renewables, a year after they took its parent Spark Infrastructure off ASX boards in a $5.16 billion take-private.
Spark Infrastructure’s new owners have begun shopping the group’s once controversial solar and wind projects investment platform, Spark Renewables, only one year after they took the parent company off the ASX-boards.Street Talk understands Spark and its owners have hired Lazard Australia to drum up interest in Spark Renewables, with the bankers inviting potential acquirers to sign non-disclosure agreements ahead of a mooted auction.
Independent expert KPMG valued Bomen at $152.4 million to $167.2 million in 2021, on an enterprise value basis, and said the pipeline could be worth another $35.2 million to $67.2 million.So as far as Spark’s empire goes, the renewables unit is far from the main game, which is something that also not long ago irked some of its listed equities investors. The division produced $7 million revenue for the 2020 financial year, while the group had about $1 billion revenue.
Given the scale, it’s not surprising Spark’s new owners KKR, Ontario Teachers’ Pension Plan and PSP Investors are willing to move it on. The question will be what price could they wrangle out of a buyer. While buyers should be able to value Bomen, the big thing is the development pipeline. At the time of Spark’s take-private, the pipeline’s capex bill was said to be a whopping $6 billion to 2026 .
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.
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