Carlyle to bid against New Zealand, China funds for Transpacific NZ arm -source

By Byron Kaye

SYDNEY, Feb 27 (Reuters) - Private equity giant Carlyle Group CG.O is expected to bid for Transpacific Industries Group Ltd's TPI.AX New Zealand waste management business, competing with state funds from both New Zealand and China in a deal that could fetch about NZ$1 billion ($830 million), a source close to the sale told Reuters.

Transpacific, a Brisbane-based recycling, waste management and industrial services company, is selling its New Zealand arm as part of a broader push to exit non-core businesses and focus on its core Australian operations.

Deutsche Bank DBKGn.DE , which is running the New Zealand sale for Transpacific, is expected to receive separate final offers on Friday from Carlyle and a consortium involving New Zealand infrastructure fund Infratil IFT.NZ and state-run insurance scheme, Accident Compensation Corporation.

A third bid is expected from the Beijing Municipal Government's Beijing Capital Group, with a fourth offer expected from another unidentified bidder. Investment firm KKR & Co

KKR.N was previously interested, but withdrew from the sale process, the source said.

Transpacific may still consider spinning its New Zealand business off in a stock market listing if final bids are deemed insufficient, the source added.

Local media reported the deal could fetch about NZ$1 billion, making it the biggest in New Zealand's waste management industry.

At that price, it would also be New Zealand's biggest takeover since Chinese appliance maker Haier Electronics Group Co 1169.HK paid NZ$927 million in November 2012 for the 80 percent of Fisher & Paykel Appliances Ltd it did not own.

It would also dwarf Transpacific's sale of its commercial vehicles business to United States-based Penske Automotive Group

PAG.N for A$219 million in August.

Carlyle, Deutsche Bank and HSBC , which is advising Beijing Capital on its bid, declined to comment. Infratil and ACC did not immediately comment.

($1 = 1.2045 New Zealand dollars) ($1 = 1.1159 Australian dollars)

(Reporting by Byron Kaye; Editing by Lincoln Feast and Kenneth Maxwell)

((byron.kaye@thomsonreuters.com)(+612 9373 1815))

Keywords: NEWZEALAND TRANSPACIFIC/SALE