List of PGW bidders is narrowed
The city has narrowed the field of bidders to buy the Philadelphia Gas Works after it received more than 30 expressions of interest from "qualified parties," Mayor Nutter's office announced Tuesday.
The city has narrowed the field of bidders to buy the Philadelphia Gas Works after it received more than 30 expressions of interest from "qualified parties," Mayor Nutter's office announced Tuesday.
The city did not specify the number of parties that submitted "indicative" nonbinding bids by a Nov. 1 deadline, or the number of prospects who were invited for a second round of bidding that will continue through January.
"The indicative bids we received reinforce our belief that a sale of PGW will benefit Philadelphia taxpayers and PGW customers," Nutter said in a statement.
The remaining bidders will receive detailed financial information about the 176-year-old company, the nation's largest municipal gas utility.
Once the final bids are in, the city will negotiate sales terms with one bidder. The sale is being managed by JPMorgan and Loop Capital Markets.
If an agreement is reached, the sale must be approved by City Council and the Pennsylvania Public Utility Commission.
Nutter has campaigned to privatize the utility, which new management restored to financial health in the last decade. Sale opponents say the city and ratepayers will be better served by continued municipal ownership.
The city's financial adviser, Lazard Frères & Co., recently calculated that PGW could command a price ranging from $1.45 billion to $1.9 billion, resulting in net proceeds to the city between $422 million and $872 million. Nutter has proposed using the money to shore up the city's underfunded pension program.