CPPIB Joins ADIA to Bid on EDF Energy Assets
by Zero Hedge - December 28th, 2009 7:59 pm
Courtesy of Leo Kolivakis
Submitted by Leo Kolivakis, publisher of Pension Pulse.
Nick Clark of the Independent reports that Abu Dhabi in for EDF asset:
The auction for EDF Energy’s electrical distribution business is expected to heat up after news emerged that Abu Dhabi, which has run the slide rule over the asset in the past, has held talks over a potential £5bn joint bid.
The Abu Dhabi Investment Authority, the Gulf state’s sovereign wealth fund, is understood to have joined the Canadian Pension Plan in a joint bid for the business, which the French energy group put on the block two months ago. Goldman Sachs and Lexicon Partners are understood to be involved in an advisory capacity to the consortium.
EDF, which is majority owned by the French government, revealed in October that it was considering its “ownership options” for the electricity distribution business in the UK. At the time it said it “regularly receives spontaneous expressions of interest”. The group, which hired Barclays Capital, Deutsche Bank and BNP Paribas to oversee the sale, declined to comment.
Eric Lam of the National Post reports CPP eyes joint bid for Europe’s EDF Energy:
The Canada Pension Plan Investment Board is planning to make a joint bid for EDF Energy, the giant U.K. electricity distribution network owned by France’s Electricité de France, reports said Monday. The deal could be worth US$7.9-billion, the reports said.The potential deal would be made in partnership with Abu Dhabi’s sovereign wealth fund with Goldman Sachs advising the bidders, Dow Jones reported after news of a possible bid appeared on the French website Wansquare.
Calls to the CPPIB were not returned Monday.
The CPPIB has had its eye on EDF Group, the parent of EDF Energy, for a while. The fund has held 104,000 shares in the French company since March.
EDF Group, one of the largest energy companies in Europe, said in October it was looking to reduce its debt by at least 5-billion euros by the end of 2010 by exploring “ownership options” for EDF Energy, which provides electricity to more than 5.5 million people and businesses in London as well as southern and eastern England.
This would not be the CPPIB’s first foray into European investments. And if the reports are confirmed, it