Energy retailer Origin Energy has pulled out of the sale process for Alinta Energy's assets, ahead of a final bid deadline next week, according to two sources familiar with the situation.
Alinta has been weighing up asset sales as it seeks to pay down its hefty $2.7 billion debt pile.
Origin was working with pipeline operator APA Group and Japan's Marubeni Corp to submit a bid for the entire asset portfolio.
An Origin spokesman declined to comment.
Other bidders still in the fray include Saudi Arabia's Acwa Power International, AGL Energy bidding with Sumitomo Corp and boutique infrastructure asset manager Infrastructure Capital Group, sources said.
The bid deadline has also been extended a couple of days from the end August deadline, one of the sources added. Alinta Energy and AGL were not immediately available for comment.
Alinta, which owns stakes in 12 power stations across Australia and New Zealand as well as an energy and gas retailer in Western Australia, has been trying to sell assets to pay down debt.
However the asset sale has been complicated by the presence of up to 40 hedge funds who own at least 50 percent of the debt. Private equity sponsor TPG Capital was reported by local media to be looking at a debt-to-equity swap to capitalise the company as a single entity.
Last week two of the company's senior debt lenders Australia New Zealand Banking Group and National Australia Bank sold chunks of the debt at around 73.5 cents to the dollar, banking sources said
AEJ Price at posting:
5.3¢ Sentiment: Hold Disclosure: Held
