It's less than a fortnight until bids are binding bids are due for NSW electricity distributor Endeavour Energy, which has fund managers and analysts considering implications for listed stocks.
The only listed company involved is Spark Infrastructure, which is bidding as part of the Transgrid consortium.
Spark owns 15 per cent of Transgrid, and Transgrid's owners are seeking to buy a 50.4 per cent stake in fellow NSW energy infrastructure owner Endeavour.
RBC Capital Markets equities research analysts reckon Spark would need a $320 million to $370 million equity injection should its bid be successful.
The analysis was based on a sale price at 1.4 to 1.5-times Endeavour's regulated asset base and a $2.11 billion to $2.43 billion equity value for the 50.4 per cent stake.
"The valuation range is based on recent M&A; history - above Ausgrid but below Transgrid and CKI's offer for DUE. Assuming SKI retains a 15% consortium interest (7.6% of Endeavour) and 75% debt/RAB, we estimate a $320-370m capital raising for SKI," RBC told clients on Wednesday morning.
Spark's Transgrid is one of two bidders in the auction.
RBC said Spark shares should outperform in the second half of the year regardless of the auction result.
The analysts said Spark's recent underperformance to peers was similar to the lead into the Transgrid deal in late 2015.
RBC's investment banking team is advising Transgrid's owners on the Endeavour bid, along with JPMorgan.
The analysis comes only one week after Macquarie's team said Spark would likely need a $300 million to $350 million equity raising to fund its bid.