A source close to Utilities Trust of Australia said that the firm was in advanced discussions with Terra Firma Capital Partners, a London-based private equity firm. The source said that Utilities Trust of Australia is looking to acquire a gas distribution and service business located in Northern Ireland.

The source said that the trust managed by Hastings Funds Management Ltd. will fork out approximately US$1.06 billion or EUR700 million, which include debt, to purchase Phoenix Energy Holdings Group. To fund the buyout of Phoenix Energy, Hastings Funds Management is also said to utilize the capital it handles on account of The Royal Bank of Scotland Group Pension Fund. While the deal is still private, the source said, the details of the transaction could be revealed as soon as Friday, 02 August.

Earlier this year, JPMorgan Chase & Co. was enlisted by Terra Firma to scout for a buyer for Phoenix Energy. Phoenix Energy provides at least 150,000 customers in North Ireland with gas utilizing an extensive network of pipelines.