keppel corp ltd (KEP) Snapshot

Centrica plc (LSE:CNA) is talking to a number of possible partners about a joint bid for Bord Gáis Energy Trading Limited. Centrica is planning an initial bid for the supplier, which is being sold by the Irish state and could fetch £1 billion, ahead of a first round deadline during the week ending June 14, 2013. It is understood the assets are being sold as one entity but that few potential bidders want the entire portfolio. Centrica is keen to acquire the customers and believes it can use its experience running British Gas to improve the supply arm, which currently makes only a low profit margin. It is also believed to want some power generation assets but does not want Bord Gáis's entire wind farm portfolio, having already been selling down its stakes in UK wind farms. It is understood to have had initial contact with possible partners, likely to be infrastructure funds, and may form a consortium ahead of the second round. However, it may also choose to bid solo and sell down the assets later.SSE plc (LSE:SSE) is also likely to bid. However, industry sources suggested it may face competition issues. Keppel Corporation Limited (SGX:BN4) and Viridian Group Holdings Limited are expected to bid. Centrica is being advised by Citigroup and Goodbody Corporate Finance. According to The Sunday Telegraph, Centrica and SSE declined to comment.

The Blackstone Group L.P. (NYSE:BX) has expressed an interest in buying Bord Gáis Energy Trading Limited (BGE), which is being sold by the State. Informed sources have told The Irish Times that Blackstone has received a copy of the information memorandum (IM). About ten parties have are believed to have sought the IM for the sale of BGE, which is expected to be sold for €1 billion. Indicative offers are to be submitted by June 2013 and the sale is expected to be completed by the end of 2013. Interested bidders are thought to include Centrica plc (LSE:CNA), Keppel Corporation Limited (SGX:BN4), GDF Suez S.A. (ENXTPA:GSZ), SSE plc (LSE:SSE), Iberdrola SA (CATS:IBE), E.ON SE (DB:EOAN), Viridian Group Holdings Limited and a Dubai-based sovereign fund. BGE has appointed RBC Capital Markets as its financial adviser, while McCann FitzGerald is the legal adviser. Irish Times added that Blackstone made no comment.

Keppel Corporation Limited announced that Keppel Energy Pte Ltd. (KE) and Keppel Integrated Engineering Ltd. (KIE) will be reorganised under a newly incorporated entity, Keppel Infrastructure Holdings Pte Ltd. with effect from 2 May 2013. Keppel Infrastructure will drive the Group's strategy to invest in, own and operate competitive energy and related infrastructure. Keppel Infrastructure, while tapping the expertise and technology of its engineering business, will continue to grow its power and gas, environmental and energy efficiency businesses. Keppel Infrastructure will have three main businesses. It will grow the company's existing power and gas business, leverage the company's WTE technology to develop, own and operate WTE facilities, as well as provide technology solutions, and seek out complementary opportunities in the energy value chain to meet the growing need for competitive energy.