Government starts process to lease half of Illawarra electricity provider Endeavour Energy

The process for the partial lease of Endeavour Energy will begin on Monday, NSW Treasurer Gladys Berejiklian announced.

Despite rumours to the contrary, there will be no share market float of the electricity provider which would allow the public to buy shares.

Instead, the leasing will follow the same process as that for TransGrid and Ausgrid – the two providers already leased as part of the government’s poles and wires” plan promised at the last election.

Of the proceeds, $20 billion has been earmarked for the Rebuilding NSW program.

The 2015 lease of TransGrid brought in more than $10 billion while this year’s Ausgrid lease was picked up for $16 billion.

Endeavour is tipped by some to bring in around $4 billion.

“We have already achieved outstanding results in our TransGrid and Ausgrid transactions and we are well on our way to delivering our target of $20 billion to go towards new infrastructure across NSW,” Ms Berejiklian said.

“These transactions are allowing us to invest billions of dollars into new roads, hospitals, schools, public transport, sports and cultural facilities, as well as vital water infrastructure in our regions.”

On Monday, companies interested in a 99-year lease of 50.4 per cent of Endeavour can put in their bid.

The window for bidding will close on January 16.

The leasing of Ausgrid hit a roadblock in August when Federal Treasurer Scott Morrison blocked the winning Chinese consortium due to security concerns.

The Ausgrid lease later went to an Australian consortium.

Under new rules brought in this week, no single overseas bidder will be allowed to own more than half of the 50.4 per cent stake.

At least 20 per cent of Endeavour Energy will need to be held by an Australian entity.

Also, Ms Berejiklian said  federal government had indicated it was now in a position to give clear guidance to potential bidders regarding the foreign investment review process.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop