‘Naturgy Cancels .6 Billion Sale of Assets in Australia’

Naturgy Energy Group SA has decided to delay the sale of the Australian assets of its renewable energy unit, Global Power Generation, due to concerns over valuation, according to sources familiar with the matter.

The Spanish energy group had initially planned to sell the assets, with expectations of raising around A billion (.6 billion). However, early interest from potential buyers did not meet Naturgy’s valuation expectations, prompting the company to put the sale on hold.

Sources revealed that infrastructure-focused investment funds and renewable energy companies were among the bidders for the assets. While the sale process may be revived in the future, Naturgy believes there is more potential upside for the unit before divesting.

Naturgy has been actively making changes to its global portfolio in recent years, including the sale of assets to raise cash and streamline operations. The company’s shares have dropped by 26% this year, reflecting a valuation of around billion.

Global Power Generation, which has over 4 gigawatts of installed capacity in eight countries, operates various renewable energy projects including wind, solar, hydro, gas-fired, thermal, and battery storage. Naturgy holds a 75% stake in GPG, while the remaining shares are owned by investment firm Wren House Infrastructure Management, a division of Kuwait Investment Authority.

Despite the delay in the sale of its Australian assets, Naturgy continues to explore opportunities for growth and optimization within its renewable energy unit.