SYDNEY, Jan. 12 (Xinhua) -- The bidding war for a major Australian power provider in New South Wales (NSW) is heating up, as end-stage talks about teaming up commenced between two financial juggernauts AMP Capital and QIC Ltd over the looming Endeavour Energy sale, Fairfax reports this Thursday.
Both companies, AMP and QIC, have worked together in the past during their successful bid on New Zealand electricity distributor Powerco back in 2013.
With a four billion Australian dollar (U.S. 2.9 billion) price tag, the NSW government is hoping to sell off a 50.4 percent stake in the business.
The move is seen as the final step in the NSW Government's bold asset recycling program, with the cash raised being used to fund Australia's largest infrastructure renewal project.
AMP would join as the third equity partner in QIC's group, along with Canadian based firm Borealis Infrastructure, with the particulars on the 99 year lease managed by investment banks HSBC and Credit Suisse.
The bid will still be subject to scrutiny by Australia's Foreign Investment Review Board (FIRB), due to the involvement of Borealis, with the final say in the matter coming down to Australian Treasurer Scott Morrison upon receiving the FIRB's recommendations.
However, as this bid would only include a minor shareholding via a foreign company, it is likely to navigate any stringent foreign ownership concerns held by the FIRB, and of course, should pass the "pub test" in the eyes of the Australian public.
The NSW Government remains confident that the sale will be finalized by June 30, 2017.