Hong Kong’s CLP seeks ‘long-term’ partner for EnergyAustralia unit

Hong Kong-based investment firm CLP Holdings said on Monday it was looking for a long-term partner in Australia to jointly invest in clean energy opportunities after local media reported Macquarie Group was in talks to buy a big chunk of CLP’s local unit.

The Australian Financial Review earlier reported investment bank Macquarie could be the front-runner in buying an up to 50 per cent stake in electricity and gas supplier EnergyAustralia.

CLP Holdings was in talks to finalise the deal with Macquarie but was also continuing talks with other interested parties, the AFR article stated, citing sources close to the discussions.

CLP Holdings in an emailed response to Reuters did not comment on the article or confirm if it was in talks with Macquarie or any other interested parties for the stake sale.

“CLP remains committed to participating in the energy transition in Australia… including finding a long-term committed partner to jointly invest in opportunities arising from the energy transition,” the company said.

“At this stage, the company is continuing to explore all options and there is no certainty that a transaction will materialise or, if it (does), be completed.”

EnergyAustralia declined to comment on a request for confirmation, while Macquarie did not immediately respond.

EnergyAustralia is one of the country’s biggest electricity and gas suppliers after AGL Energy and Origin Energy. It is also the third-largest carbon-polluting power producer in the country.

In fiscal 2022, EnergyAustralia recorded an operating loss of HK$5.27 billion ($673.71 million) due to multiple weather events in the country and the impact of the Russia-Ukraine war on coal and gas prices.

($1 = 7.8223 Hong Kong dollars)



Source: Reuters