London’s new year IPO will buck sad 2019 trend 9 Jan 2020 KKR is looking to list one-quarter of its UK smart-meter group, Calisen. Last year the volume of London listings dipped as new offers were pulled and existing ones lurched. The strategic tailwinds behind Calisen’s sector should stop it being added to the pile of duds.
PG&E deal gets another restructuring ball in air 9 Dec 2019 The bankrupt California utility has seized the initiative from creditors by settling wildfire victims’ claims for $13.5 bln. It’s a big step in qualifying for a state wildfire fund. Satisfying other political, legal and financial demands on the firm requires more deft juggling.
Some Uniper investors now more equal than others 8 Oct 2019 Finland’s Fortum is buying the 20.5% of the German utility held by activists Knight Vinke and Elliott for 2.3 bln euros. Pushing its own holding above 70% gives Fortum effective control. But it makes second-class citizens of Uniper shareholders that don’t get the same deal.
Suez turnaround is stuck on an amber light 2 Oct 2019 Empire-building has weighed on the French utility’s returns. A new focus on the bottom line is thus a win for activist Amber Capital. Still, a share price dip on Wednesday suggests investors aren’t ready to take CEO Bertrand Camus’s promises of better top line growth on trust.
Britain’s power grid picks bad time to screw up 12 Aug 2019 A big UK power cut would be grim at the best of times for the system’s operator. But National Grid also faces upheaval from new price rules, the transition to greener energy, and a nationalisation threat. Even if blame for the mess lies elsewhere, it hands ammunition to critics.
Centrica’s CEO exit is only partially deserved 30 Jul 2019 Under-fire boss Iain Conn will leave the UK utility next year. Had he quit oil and gas production sooner, Centrica shares might not have dived 70% during his tenure. But preparing an ageing utility for the energy transition while battling state price caps was a thankless task.
Suez boss gets helpful kick in derriere from Amber 18 Jul 2019 The 8 bln euro French utility, whose history includes the Egyptian canal’s construction, presents a juicy target for the activist. Bertrand Camus just took the reins in May, following years of crummy empire-building returns. He should welcome Amber’s thoughtful approach.
UK may swap one utilities dogma for another 15 May 2019 If elected, opposition Labour leader Jeremy Corbyn could nationalise water and energy networks below market value. Crudely ditching privatisation for state ownership carries legal and reputational risks. Better to lower the returns that regulators allow these companies to make.
Swiss do their bit for energy resource nationalism 5 Apr 2019 France’s EDF is selling its quarter-stake in fellow utility Alpiq for $489 million. That helps existing Swiss investors take the group private. But it also fits with a wider trend where European states are happier with vital infrastructure being held by domestic owners.
RWE’s German carve-up looks better than E.ON’s 14 Mar 2019 A year after a 17 bln euro asset swap, the German utilities’ deal is in Brussels’ antitrust sights. It’s more an issue for E.ON, which may lose out if forced disposals erode hoped-for cost savings. RWE, meanwhile, seems to have chosen the right time to bulk up in renewables.
EDP overhaul makes Chinese bid look extra stingy 12 Mar 2019 The Portuguese utility will sell assets to cut debt and invest in renewables. It looks like a balancing act between the demands of activist Elliott, and Portugal’s government. But the potential boost to EDP’s value bolsters the case for rejecting an offer from China Three Gorges.
Engie demystifies before activists come calling 28 Feb 2019 The French gas and power group is decluttering its complex structure by exiting 20 markets. Engie’s state ownership and Belgian nuclear albatross act as a brake on activism, but won’t always save it if its undervaluation lingers. Still, steps to close the gap with big wind and solar peers suggest a capacity for self-help.
Centrica starts to radiate bid target status 21 Feb 2019 The UK’s biggest energy supplier slumped after warning of a hit from a state price cap. Centrica is a random mix of retail customers, nuclear, gas and new tech. But its halving in value since 2017 offers a way for utility wannabes like oil majors to quickly bulk up.
South African power bailout puts consumers on hook 20 Feb 2019 A $4.9 bln government lifeline is the bare minimum needed to keep indebted utility Eskom afloat. Likely union resistance to mass layoffs means consumers will have to swallow higher electricity costs. President Cyril Ramaphosa can only hope hikes are delayed beyond a May election.
PG&E governance brownout calls for a jump start 14 Feb 2019 The troubled California utility wants to replace half its board, but shareholder BlueMountain proposes a full reset. A complete overhaul is rarely wise, but in PG&E’s case it could be helpful. The catch is, looming bankruptcy means the activist fund may not be the best advocate.
Elliott kicks China’s EDP bid when it’s down 14 Feb 2019 The activist investor objected to China Three Gorges’ offer for the Portuguese utility. The deal was struggling, and Elliott’s plan, to invest in renewables, isn’t controversial. But the Chinese group’s large shareholding could still be a problem for Paul Singer’s fund.
Viewsroom: Why did PG&E file for bankruptcy? 31 Jan 2019 The California utility may face up to $30 bln in wildfire costs. But shareholders see value and lenders were willing to stump up cash. The board’s desire to cut other expenses may have driven the decision. Plus: How U.S. charges against Huawei may affect the telco industry.
PG&E takes pre-emptive bankruptcy to a new level 29 Jan 2019 The California utility has filed, despite having a $20 bln surplus of assets over liabilities, offers of finance, and one less big wildfire to worry about. The company hasn’t yet made a persuasive case for choosing a process that will surely be lengthy, expensive and distracting.
BlueMountain is tardy with PG&E activism 24 Jan 2019 The hedge fund firm wants to oust the California utility’s directors, who are heading toward bankruptcy. It has a point: The hit from wildfires is not yet defined, and PG&E has stumbled in other ways. But BlueMountain is running out of time to rouse bigger, longer-term owners.
PG&E takes one for the California wildfire team 14 Jan 2019 The utility is readying a bankruptcy filing, facing $30 bln of fire-related liabilities partly thanks to the Golden State’s questionable legal norms. Poor planning, including inadequate insurance, was its own fault. But state and other government actors have also fallen short.