Genting-Sime Consortium Makes New Power Bid
MELBOURNE -- - A Malaysian consortium is seeking to make another bid to win control of Victoria's biggest power station, Loy Yang A, with a bid to rival Australian Gas Light (AGL) and Tokyo Electric's offer of A$3.5 billion.
The Australian Financial Review (AFR) reported that Genting Bhd and Sime Darby Bhd were willing to match AGL/Tokyo Electric's offer.
But the Australian Competition and Consumer Commission (ACCC) is considering whether AGL, already Victoria's largest electricity retailer, should be allowed to move into power generation.
In a letter obtained by AFR solicitors Mallesons Stephen Jaques partner Robert Milliner, confirmed Genting and Sime Darby had offered to match the AGL/Tokyo Electric offer of A$3.5 billion.
"We confirm that Genting is working to obtain board approvals to make an offer to you, on the terms and conditions of the attached draft letter offer, to acquire when you are free to accept such offer, the business of Loy Yang A," the letter states.
Genting had obtained Australian Foreign Investment Review Board approval on Dec 9.
But it withdrew from the bidding process in March when Sime Darby failed to obtain funding approval from Bank Negara Malaysia. Approval has now been obtained.
Under Section 50 of the Australian Trade Practices Act, the existence of a credible rival offer gives the regulator, ACCC, stronger grounds to reject a proposal, such as AGL's, that results in substantial lessening of competition.
Loy Yang is owned by US utilities CMS Energy and NRG and Macquarie Bank-managed Horizon Energy.
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