Canada’s Ontario Teachers’ Pension Plan and KKR have jointly made a A$5bn (€3.2bn) offer for the listed Australian energy firm Spark Infrastructure.

Ontario Teachers’ and KKR infrastructure funds are offering A$2.80 per stapled security before distribution of A$0.0625 per security on 1 July 2021.

Spark Infrastructure said this was a revised offer after the board rejected the consortium’s initial offer of A$2.75 per security.

Spark Infrastructure said following careful consideration, the revised also undervalued Spark Infrastructure.

“While not granting access to due diligence, in order to be constructive the board of Spark Infrastructure informed the consortium that it was prepared to provide limited information on Spark Infrastructure’s business and its prospects.”

Separately, Spark also announced that its subsidiary, Spark Renewables, had plans to develop a renewable energy storage hub in Southwest NSW for up to 2.5GW.

Spark Infrastructure owns 49% of SA Power Networks, the sole operator of South Australia’s electricity distribution network, and 49% of Victoria Power Networks, which owns electricity distributors Citipower and Powercor.

Its other key investment is a 15% stake in Transgrid, which runs electricity transmission lines in NSW and is the biggest transmission company in the Australian national electricity market.

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