Thanks for the tip waimo. I just had a look at Infratil's Web site (http://www.infratil.com/our-businesses/) and the businesses they appear to be selling are:
1. Lumo Energy, a second tier gas and electricity retailer based in Melbourne, selling to the eastern Australian market
2. Perth Energy, an electricity retailer to commercial and government customers in WA
3. Infratil Energy Australia (IEA), owner of three small gas peaking generators - two in South Australia and one in the Hunter valley. A total of 165 MW, or about half the size of Oakey Creek.
4. Direct Connect, a service company that organises connection of utilities and communications when people move house
While these businesses are close to what ERM would consider its core business, I think it will be a matter of whether these businesses are aligned with where ERM sees itself developing, and whether they are quality businesses with growth opportunities. Are the IEA generators big enough and profitable enough to want to own? Does ERM want to grow in the retail market through acquisition or grow organically using its existing, highly regarded platform?
Maybe Infratil is more a seller than ERM is a buyer and there is a bit of fishing going on.
My thinking is that if ERM miss out on Macquarie Generation, which seems likely, then they will look to acquire base load generators in Queensland that may come onto the market after the next Queensland state election.
EPW Price at posting:
$1.87 Sentiment: LT Buy Disclosure: Held
