KKR-Led Group Said to Near Deal for Australia’s Spark

Harry Brumpton
·1 min read

(Bloomberg) --

A consortium led by KKR & Co. is nearing a deal to acquire Spark Infrastructure Group that could value the Australian energy company at about A$5.2 billion ($3.7 billion), according to people familiar with the matter.

The Sydney-based company has reached an agreement for a scheme-of-arrangement takeover with the private equity firm along with Ontario Teachers Pension Plan and Public Sector Pension Investment Board at A$2.95 per share, said the people, who asked not to be named discussing confidential matters. The deal could be announced this week, though talks may still be delayed or fall apart, the people cautioned.

Spokespeople for Spark and the consortium declined to comment when contacted Sunday.

An agreement would cap a few weeks of due diligence by the investment funds, following an offer that started at A$2.70 per share, and was raised to A$2.80 before the firms put forward the proposal for A$2.95 per share late last month.

Spark’s assets consist of a portfolio of minority stakes in other electricity transmission and distribution businesses in Australia, including 49% holdings in both South Australia’s electricity distribution network and Victoria Power Networks Pty Ltd, and a 15% interest in the TransGrid high-voltage electricity transmission network. It also owns the Bomen Solar Farm Pty Ltd in New South Wales.

Spark’s financial year 2021 results are scheduled to be released on Tuesday.

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