It’s no secret that the strategic investors and infrastructure funds are paying big prices for electricity network assets.
But what about the listed power network owners?
Citi reckons the likes of AusNet and Spark Infrastructure, in particular, have been left behind.
“Recent M&A deals of unlisted assets have achieved very high prices, in part due to the current low cost of debt and investor appetite for yield,” the analysts told clients this morning.
“We think this shows a clear disconnect between prices paid in private markets and valuations ascribed for listed names.
“In particular Ausnet and Spark look cheap (~11x) vs the recent Transgrid deal (14.7x) and media speculated Ausgrid (14.2x) Chine…
Read the full article at: http://www.smh.com.au/business/markets-live/markets-live-asx-on-shifty-ground-20161016-gs3pzu.html