Hong Kong billionaire Cheng kicks off Us$3bil Alinta Energy sale

HONG KONG: Chow Tai Fook Enterprises Ltd, backed by Hong Kong billionaire Henry Cheng, is preparing to kick off the sale of Australian power company Alinta Energy, in a deal that could value it at about Us$3bil (Rm13.4bil), people with knowledge of the matter said.

Chow Tai Fook is working with Goldman Sachs Group Inc on the potential divestment, said the people, who asked not to be identified as the information is private.

The company has reached out to several prospective suitors to gauge interest in Alinta and is planning to formally launch the sale process in the coming weeks, the people said. They added that deliberations are ongoing and details such as timing and price may change.

Representatives for Chow Tai Fook Enterprises, Goldman Sachs and Alinta Energy didn’t immediately respond to requests for comment outside normal business hours.

Alinta Energy sells gas and electricity to more than a million households and employs around 800 people across Australia and New Zealand, its website shows. It generates about 3,000 megawatts of power.

Cheng’s company bought Alinta Energy for more than Us$3.1bil (Rm13.8bil) in 2017, Bloomberg News reported at the time.

It acquired the Loy Yang B coal power station in Victoria for about A$1bil (Us$702mil or Rm3.1bil) the following year. Henry Cheng has a net worth of Us$24.2bil (Rm108bil), according to the Bloomberg Billionaires Index. His family controls Hong Kong-based real estate developer New World Development Co, and jewellery retailer Chow Tai Fook Jewellery Group Ltd.