Bord Gáis Energy sold for €1.1bn

The country’s coffers are to be boosted by more than €1bn as the proceeds from the sale of Bord Gáis Energy are expected to be lodged with the Government in the first half of the year.

Britain’s Centrica and consortium partners iCON Infrastructure and Brookfield Renewable Energy will buy the retail arm and assets of State-owned Bord Gáis for €1.1bn.

The announcement was confirmed in a statement to the stock exchange by Centrica plc yesterday morning.

Subject to the sale clearing certain regulatory hurdles and merger approvals, the deal will complete in the second quarter.

Pat Rabbitte, the energy and natural resources minister, and Brendan Howlin, the public expenditure minister, issued a joint statement welcoming the sale.

“We are pleased to announce that an agreement to sell the Bord Gáis Energy business has been signed,” they said.

“The commitment made by these buyers to acquire the business is a strong vote of confidence in the Irish energy market, the Irish economy, and in the Bord Gáis Energy business and its employees. The sale proceeds will provide additional funding to Government to enable further investment in infrastructure and jobs.”

Centrica will purchase Bord Gáis Energy, Ireland’s biggest electricity and gas company, and the 445mW Whitehead gas-fired power station.

Centrica chief executive Sam Laidlaw said the company is excited about expanding into Ireland.

“This is a unique opportunity for Centrica to take a first step in a neighbouring market with strong links to the UK, building on Bord Gáis Energy’s existing capabilities and delivering value for the group,” he said.

The other members of the consortium, iCON Infrastructure Partners and Brookfield Renewable Energy Partners, will purchase Bord Gáis Energy’s distribution and renewable power generation assets,

Rose Hynes, the chairwoman of Bord Gáis, said that once the transfer of assets is complete, the company will concentrate on developing its new venture, Irish Water, and the gas network here.

“Following the sale of its energy business, Bord Gáis Éireann will continue its transformation to become a major Irish infrastructure company consisting of two main subsidiaries, Irish Water, which it is developing into a world class utility business, and Gas Networks Ireland which will continue to fulfil its central role in energy supply,” she said.