UnitedNetworks attracting interest

By CHRIS DANIELS

UnitedNetworks, New Zealand's largest power lines company, says it has received more than 20 expressions of interest from companies wanting to buy either all of it shares or its assets.

The North Shore-based company, with assets worth $2.3 billion, is up for sale after United States energy giant Aquila decided last month to sell its 70 per cent stake.

It is willing either to sell its shares to another party as part of a full takeover offer, or to split the company up and sell it in parts, or as a whole, to the highest bidder.

Chief executive Dan Warnock said the expressions of interest had come from New Zealand and overseas.

He said the company had agreed with Aquila that if UnitedNetworks decided to sell all, or substantially all, of the assets, then Aquila would launch a takeover offer.

This means that UnitedNetworks shareholders would not be left stranded, owning shares in a cashed-up shell company. Warnock said Aquila had also agreed to either "pay or procure payment" for costs associated with the sales process, including financial and legal advisory costs.

Shortlisted parties will be given an opportunity this month to conduct due diligence on UnitedNetworks.

Final, binding bids will be submitted late next month.

* In a separate development, Reuters reports that Contact Energy is among six companies to have submitted indicative bids for NRG Energy's Australian assets.

US utility Duke Energy, Hong Kong's CLP Holdings, Malaysian company Genting, Belgian energy company Tractebel, a unit of French utility Suez and power generator International Power have also expressed interest.

Analysts have valued the American power generator and trader's Asia Pacific assets, which include one of Australia's largest portfolios of private generation, at about A$2 billion ($2.3 billion).