A DEAL TO sell Bord Gáis Energy for up to €1.12 billion is expected to be completed early next year after the Government selected its preferred bidder this evening.

The winning bid was made by a consortium headed British multinational Centrica plc which operates under the name British Gas in the UK market.

Brookfield Renewable Power and iCON Infrastructure are also part of the consortium that have made the winning bid.

Last month the Department of Communications, Energy and Natural Resources had said that it had not attracted bids that met the government’s valuation.

But Minister Pat Rabbitte has now said that all three bidders had come back with revised bids that “materially increased value for Bord Gáis Energy”.

The Minister says that discussions will now commence between parent company Bord Gáis Éireann and the preferred bidder to finalise the terms of the sale agreement which is expected to be signed in early 2014.

Rabbitte says that the sale of Bord Gáis Energy represents a vote of confidence in the Irish market:

The entry into the all-island energy market of international strategic investors is a strong vote of confidence in the market, the Irish economy and in the Bord Gais Energy business and its employees. The successful conclusion of the sale will help provide additional funding to enable investment in infrastructure and jobs.

Speaking on RTÉ news this evening, Rabbitte said that “more than 50 per cent” of the value of the sale will be made available to stimulate job creation with remainder used to write-off debt.

Under the terms of the sale, the Government says that the gas networks will be retained under state ownership. The rest of the business including Bord Gáis Energy’s customer base, wind energy companies part and a power station will be sold.

Bord Gáis Éireann will now operate the remaining networks company and the newly formed Irish Water.

“The sale process has now reached an important milestone with the appointment of a preferred bidder,” Rose Hynes, the chairperson of Bord Gáis Éireann said this evening. “The company will continue to work with staff, unions and relevant Government departments to complete the process by early 2014.”

Current employees of Bord Gáis Energy will be retained under the deal with pension entitlements also guaranteed.

Read: Bids for Bord Gáis Energy are “not acceptable” – Rabbitte >

Read: For sale: State asset sell-off begins as Bord Gáis Energy invites bids >

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