Thai utility bids A$295m for Transfield infra fund

Bangkok-based Ratchaburi Electricity Generating Holding has proposed to offer A$0.85 per share to acquire an 80% stake in Transfield Services Infrastructure Fund’s portfolio of wind, water and energy projects.

Thailand’s largest private power company, Ratchaburi Electricity Generating Holding, has proposed to acquire 80 percent of Sydney-listed Transfield Services Infrastructure Fund (TSI).

Ratchaburi offered A$0.85 (€0.62, $0.88) per share for the fund, which would value the deal at about A$293.9 million, given the August 2010 volume of shares stated in TSI’s most recent annual report.

TSI: being courted by new
owner

TSI owns a 14 percent stake in the largest power plant in the state of Victoria, and jointly owns two water filtration plants. Its assets also include wholly-owned power stations in Queensland and western Australia, and three wind farms.

TSI is managed by Australian infrastructure maintenance services provider Transfield Services, which currently owns 43.8 percent of the fund’s shares.

Ratchaburi said it would acquire the 56.2 percent of TSI not owned by Transfield Services, and it would acquire an additional 23.8 percent of the fund from Transfield Services under a separate proposal, according to a statement on the Australian Securities Exchange.

The offer is still subject to regulatory and board approvals. The independent directors of the fund have not yet stated their view on the proposal, according to a statement.

TSI reported earnings before interest, tax, depreciation and amortisation of A$59.6 million for the first half of its 2011 financial year, an 11.9 percent increase from the earlier period.

TSI last closed up 28.5 percent at A$0.79 per share.