Senex joins KKR, Apollo in pursuit of Origin assets

While private equity firms Apollo and Kohlberg Kravis Roberts are believed to be circling Origin Energy’s upstream energy assets, it is now thought that there could be at least one more suitor in line to clinch the $1.5 billion offering.
There is now an expectation that Senex could be a potential buyer.
The listed Australian oil and gas exploration and production company recently brought global private equity firm EIC into its tent as a substantial investor and now has the firepower to expand its Australian portfolio.
While Origin’s upstream energy assets are mooted for a listing on the Australian Securities Exchange later this year, suitors are already preparing to make offers for the assets that may convince Origin to divest them in a trade sale.
As well as KKR and Apollo looking, Beach Energy is an eager buyer, hiring Credit Suisse as an adviser and receiving backing from major shareholder Seven Group Holdings.
Some, however, question whether the acquisition could be too large for Beach.
Macquarie Capital and UBS are working on the prospective float of the assets that include Victoria’s Bass Gas and Otway operations and the Kupe Gas operation in New Zealand, with a raising of about $500m expected, although much of the value depends on the terms of the contract set by Origin.
A third joint lead manager will be appointed should the assets float, with several banks expected to pitch for the role.
It comes as some banks were said to have pitched last week for a mandate to sell Rio Tinto’s coking coal assets, which may sell for as much as $2bn.
Origin is only one of at least three current targets for KKR in Australia. KKR is part of the consortium eager to buy part of Tatts Group’s lotteries business and is also interested in Officeworks, worth $1.5bn.