got a penny for wec ??? AFR STREET TALK May 16 2018 at 3:50 PM...

got a penny for wec  ???

AFR

• STREET TALK
• May 16 2018 at 3:50 PM
• Updated May 16 2018 at 3:50 PM

Vales Point Power Station investor and director Brian Flannery is seeking a buyer for his half share of the NSW power station.

Other potential buyers include Apollo Global Management, which knows Vales Point and its owners well and ran due diligence on the station as part of the Loy Yang B power station sale last year, and renewable energy owners seeking a reliable coal-powered source of energy.


However, it remains to be seen whether Flannery and Goldman Sachs can find appeal more broadly.

It is understood Goldman Sachs has started reaching out to interested parties, including those that had sounded out Vales Point's owners in recent months. The strategic review is said to be at an early stage.

It is understood Flannery's co-owner at Vales Point, Trevor St Baker, who is also chairman of Vales Point's holding company Sunset Power International, is not interested in buying the half he does not already own.

It is expected the new investor would require St Baker's blessing, as part of the shareholder agreement.

Vales Point, which is a 24 hour-a-day baseload plant with 1320 megawatt operating capacity, is on Sunset Power International's books for $722 million.

Should Flannery find a buyer at anywhere near that valuation, it would crystallise a remarkable profit.

Flannery and St Baker bought the station for $1 million in November 2015, at a time when there were deep doubts about the coal fired power industry and few buyers for such assets. The government said it also helped get liabilities, worth about $130 million, off the state's books. Goldman Sachs also managed that sale.