Hong Kong investor leads bid for Northern Ireland’s biggest gas distributor Phoenix Energy

Phoenix Energy, Northern Ireland’s largest gas distributor, is set to be acquired by a consortium of investors, it has been reported.

According to Bloomberg, a consortium of investors including Hong Kong’s CK Infrastructure Holdings has agreed to buy the gas operator for £756m (€880m) .

CK Infrastructure is the largest publicly listed infrastructure company in Hong Kong and has investments across energy, transport and water infrastructure.

The consortium also includes CK Asset Holding and Power Assets Holdings, a vertically integrated electric utility company headquartered in Hong Kong.

It is understood that Power Assets holds a 60pc equity interest in the consortium while CK Infrastructure and CK Assets hold the balance.

Phoenix Energy was established in 1996 and operates the largest natural gas distribution network in Northern Ireland, and has over 250,000 customers.

The company reported a turnover of £65m and pre-tax profits of £16m for the year ending December 2022.

It employs 121 people, according to its latest accounts.

The potential sale of Phoenix Energy was first reported last year, when it was revealed that Australian investment bank Macquarie was pushing ahead with the sale of its 50pc stake in the company.

Macquarie had requested that bidders indicate if they were interested in acquiring the entire company. It was acting on behalf of NatWest Group Pension Fund, which owned 50pc of the business. The remainder is owned by Utilities Trust of Australia.

The NatWest stake in the Northern Ireland company is managed by Vantage Infrastructure, the former international fund management arm of Australian fund manager Hastings.

Last year, the company rebranded from Phoenix Natural Gas to Phoenix Energy to reflect efforts to decarbonise.

Private equity group Terra Firma Capital Partners sold Phoenix Energy to Hastings in 2013 for about £700m.

Hastings acquired the energy company on behalf of managed accounts for the Royal Bank of Scotland pension plan and Utilities Trust of Australia.

Phoenix Energy currently provides gas to about 251,000 customers in Northern Ireland via a network of 4,000km of pipes. It has a significant customer base in the greater Belfast area. Its CEO is Kailash Chada while its group chairman is former chief executive Peter Dixon.

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