Sources say that Kretinsky EPH and Itochu are expected to bid for Energia.

According to two sources familiar with the situation, Daniel Kretinsky's Czech energy group EPH as well as Japanese trading house Itochu will likely make a preliminary bid for Irish utility Energia Group.

The people also said that investors Ardian and Asterion, as well as CPP Investments are expected to bid. One of the sources said that Itochu will form a consortium, and CPP Investments could team up with Britain’s Octopus energy, in which they are investors.

Sources and a third source said that after being acquired by the private equity firm I Squared in 2016 for approximately $1 billion, a new sale would value Energia Group as more than 2 billion euro ($2.27 billion), including debt.

Sources and a 4th source said that non-binding bids are due by this week. The four sources all spoke under condition of anonymity as the matter was private.

I Squared CPP Investments Itochu EPH Ardian Asterion have all declined to make a comment. I Squared was contacted by Energia Group and Octopus Energy didn't respond to a comment request immediately.

Energia Group is the latest energy company to attract investor interest after the acquisition of Electricity North West last year by Iberdrola.

The company has invested in renewable energy, power distribution, gas turbines and data centres.

Three sources confirmed that Energia Group has recently received permission from Irish authorities for the construction of a data center in Dublin, allowing it to proceed with its sale.

I Squared first announced last year its intention to sell Energia. Reporting by Andres González in London, Emma-Victoria Farr and Yuka Obayashi in Frankfurt. Additional reporting by Yuka and Giles Elgood.

(source: Reuters)