Engie mulls $2.5b divestment of Australian energy assets
French energy company Engie has approached banks about a potential sale of its Australian business. The $2.5bn portfolio includes 3,538 MW of total capacity and a 46 MW wind farm, as well two of the most carbon-polluting generators in Australia. It also includes a fast-growing gas and electrical retail company, Simply Energy, that has more than half a million Australian customers.

French energy giant Engie, the rebadged GDF Suez Group, is considering the sale of its Australian business in a deal which could be worth as much as $2.5 billion, as revealed by Street Talk on Tuesday.

It's understood Engie has approached investment banks seeking pitches around potential sale structures and valuations for the portfolio, which includes two of the country's most carbon-polluting generators.

As one of the country's largest independent power companies, Engie owns the Loy Yang B and Hazelwood brown coal-fired power stations in Victoria's Latrobe Valley, as well as the Pelican Point gas plant in South Australia and the Kwinana gas generator in Western Australia.

Street Talk understands French energy giant has asked local investment banks to sign confidentiality agreements ahead of a potential advisory mandate. Pat Scala

The portfolio includes some 3538 megawatts of total capacity, including a 46 MW wind farm inSouth Australia.

Also within its portfolio is Simply Energy, a medium-sized but fast-growing electricity and gas retailing business that is 28 per cent owned by Japan's Mitsui & Co. Started in 2005, Simply now has more than half a million residential, business and commercial customers across Victoria, South Australia, NSW and Queensland.