AFR:
There's a cashed-up latecomer for Vocus Group's up-for-sale Kiwi arm.
Street Talk can reveal $US250 billion Canadian giant Brookfield, which has turned up in several big-ticket Australian auctions in recent months, is preparing to submit a final offer for Vocus New Zealand by the last week of April.
The Toronto-based asset manager is expected to bid against electricity and telco services retailer Trustpower, which is taking its counsel from local boutique Cameron Partners. Brookfield is self-advised.
Private equity suitors TPG and Pacific Equity Partners earlier withdrew from the sale process while doubts have been raised about the auction's other domestic suitor 2degrees, which is majority owned by Canada-based Trilogy International Partners.
In a note to clients last week, UBS analysts highlighted commentary from a conference call with Trilogy,which suggested there may be a mismatch in price expectations.
"Trilogy noted in particular that because of the high level of competition in the New Zealand broadband space, 'there's a pretty big gap between what we think this thing would be worth and what the sellers expectations are,'" the broker said.
Brookfield last year kicked the tyres on
data centre business, Metronode, while its
$9 billion takeover of infrastructure group Asciano has been its biggest play in Australia to date.
Vocus is understood to be seeking $500 million to $600 million for the business. It
earlier told interested parties that its New Zealand unit was a highly profitable standalone business with $NZ342 million ($315 million) revenue in the year to June 30 and $NZ60.9 million in underlying earnings.
Goldman Sachs and Credit Suisse are running the auction.
