MacGen battle

AGL Energy has been tipped as the likely front-runner to acquiring state-owned utility Macquarie Generation, but rival bidder ERM Power is not out of the race.
MacGen battle MacGen battle MacGen battle MacGen battle MacGen battle

Image courtesy of MacGen.

Blair Price

Macquarie Private Wealth said in a client note last week that AGL was in front since a Chinese consortium pulled out.

“ERM’s need for equity if successful is highlighted by the early release of its results [available yesterday],” MPW said.

“For AGL, MacGen covers its short position in the market and allows AGL to use the surplus to rebuild its commercial and industrial business which has shrunk in recent years.”

MPW postulated that a $1.7 billion price tag for the MacGen assets could be justifiable.

Meanwhile, in a separate note on ERM this morning, MPW said its interim result was interesting but MacGen was the potential game changer.

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