I Squared Joins Bidding for $4 Billion Equis Portfolio

  • Orix plans to team with Dutch fund APG for indicative offer
  • Bids due this week for Asia Pacific renewable energy business

I Squared Capital, the infrastructure investment firm, is among suitors preparing bids for Equis Energy’s renewable power business, people with knowledge of the matter said.

Orix Corp. is also planning to make an indicative offer by this week’s deadline for the portfolio of Asia Pacific assets, according to the people, who asked not to be identified as the information is private. The Japanese firm is bidding together with Dutch asset manager APG Groep NV, the people said. Singapore-based Equis, which has appointed banks for a strategic review, is seeking to value the portfolio at more than $4 billion including debt, the people said.

State Power Investment Corp., the Chinese state-owned electricity generator, and French utility Engie SA have also been considering bids for the Equis business, people with knowledge of the matter said last month. Equis expects a transaction to close in the fourth quarter, the firm’s Communications Director Roberto De Vido said at the time.

Renewable energy assets are drawing increased investor interest as governments throughout Asia are encouraging the use of non-fossil fuels to combat pollution in the region. Announced acquisitions of Asian alternative power companies total $6 billion so far this year, up from $5.1 billion during the same period in 2016, data compiled by Bloomberg show. 

No final decisions have been made, and there’s no certainty the deliberations will lead to firm bids, according to the people. Representatives for APG, Equis and Orix declined to comment, while a representative for I Squared Capital didn’t immediately respond to requests for comment.

Equis, run by former Macquarie Group Ltd. executives, is pursuing a sale after delaying plans for an initial public offering of its operational assets, people with knowledge of the matter said in March. Its portfolio includes about 4.7 gigawatts of solar, wind and hydro generation across Australia, India, Indonesia, Japan, the Philippines, Taiwan and Thailand, according to an April statement from the company.

I Squared Capital has a global clean energy portfolio of more than 4,300 megawatts in operation or under construction in 13 countries, according to a February statement. The investment firm agreed last October to buy Duke Energy Corp.’s South and Central America businesses for about $1.2 billion including debt.

— With assistance by Elffie Chew, Aibing Guo, Francois De Beaupuy, Ellen Proper, Jonathan Browning, and Joyce Koh

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