SYDNEY | Thu Jul 28, 2011 7:51am EDT
(Reuters) – Australia’s Macquarie Group (MQG.AX) has teamed up with investment manager Industry Funds Management to bid in the privatization of a Sydney desalination plant, in a deal potentially worth $2.1 billion, sources said on Thursday.
The sale is also expected to attract interest from General Electric (GE.N), France’s Suez Environment (SEVI.PA), Hong Kong’s Cheung Kong Infrastructure (1038.HK) and pension funds, sources familiar with the matter told Reuters and Reuters Basis Point.
The New South Wales state government earlier this week appointed investment bank Goldman Sachs (GS.N) to advise on the sale. The government was still working out the timetable for the sale process, one source said, though bidders are expecting it to kick off later in the year.
Deutsche Bank’s (DBKGn.DE) asset management firm RREEF and Canadian pension funds such as Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board are also expected to take a look at the asset, the sources said.
Foreign investors have eyed a wave of infrastructure privatizations by Australian state governments in recent months. Hong Kong’s CLP Holdings (0002.HK) and Origin Energy (ORG.AX) agreed to buy $5.3 billion in energy assets from New South Wales state last December.
(1 = 0.907 Australian Dollars)
(Reporting by Sharon Klyne, additional reporting by Michael Smith; Editing by Balazs Koranyi)
Jacqueline Tongko 