EDF sale draws international interest

The sale of a British electricity network owned by French group EDF is a draw for a range of global investors such as the Abu Dhabi Investment Authority and Ontario Teachers pension plan, according to a report today.

The forthcoming auction of EDF’s British interest is drawing interest from a spread of international infrastructure investors, according to a report today.

The Times says among those keen on acquiring the French group’s UK electricity network are Abu Dhabi Investment Authority (ADIA), Cheung Kong Infrastructure owned by Asia’s richest man, Li Ka-shing, and Canadian pension funds Borealis, Ontario Teachers, and Canadian Pension Plan. Morgan Stanley Infrastructure and utility companies Scottish & Southern, National Grid, and the investment group GIP and are also holding talks, according to the report.

French nuclear company EDF recently asked Deutsche Bank and Barclays Bank to prepare the auction of its UK network arm which supplies power to approximately eight million homes in east and southeast England. The sale has arisen out of a need to reduce some of its €24.5 billion of debt amassed following last year’s £12.5 billion (€14.6 billion; $20.6 billion) takeover of British Energy. 

The Times says the interested parties have been discussing forming various consortia ahead of the official start of the auction, expected next month.