By Marietta Cauchi and Jan Hromadko
LONDON--RWE AG (RWE.XE), Germany's second-largest utility by
market value, received at least three indicative bids for its
Czech-based long distance gas transmission business, Net4Gas, by
the July 27 deadline, people familiar with the situation told Dow
Jones Newswires on Thursday.
The bidders include Czech privately held financial and
industrial group KKCG; Macquarie Group Ltd. (MQG.AU); Global
Infrastructure Partners, which submitted a joint bid with
Energeticky a Prumyslovy Holding, a closely held Czech investment
firm, and Belgium gas transmission company Fluxys SA (FLUX.BT), the
people said.
Net4Gas is one of a clutch of assets being sold by RWE as the
firm struggles with slumping energy consumption across Europe and
seeks to reposition itself in the wake of Germany's decision to
pull out of the nuclear market.
RWE in May reported a drop in first-quarter earnings, saying the
renewed economic downturn is depressing energy consumption across
Europe. It has responded by cutting costs, selling assets and
trimming investment. RWE intends to sell assets worth 7 billion
euros ($8.6 billion) by the end of next year and cut costs by EUR1
billion through 2014, which could include job cuts.
The bids were expected to be around EUR1.4 billion.
It is unclear whether other potential buyers--Australian
investment fund IFM Investment Funds; and Borealis Infrastructure
Management Inc., which is part of Canada's Ontario Municipal
Employees Retirement System--put in bids.
Another potential bidder, Poland's pipeline operator Gaz-System
SA, said July 27 that it wouldn't be placing an offer for
Net4Gas.
A spokesman for RWE declined to comment.
Write to Marietta Cauchi at marietta.cauchi@dowjones.com
(Marynia Kruk and Leos Rousek contributed to this article.)
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