A shortlist of buyers for Gama's stake in the Co Galway Tynagh Energy plant has been drawn up by the company's advisers.

It is understood several financial companies have expressed an interest in the stake and Bord Gáis and Viridian may also be included. Gama declined to comment yesterday on the identity of those on the shortlist.

Gama wants to sell a 40 per cent shareholding, but has indicated it is prepared to sell its entire 80 per cent stake if the price is right.

Bord Gáis has been anxious to acquire its own generating capacity, but so far its progress has been slow. However, the company has been studying the idea of buying into Tynagh. "It would be a surprise if the company was not seriously studying the possibilities," said a source yesterday. The company itself has declined to comment.

The New York-based financial advisers Fieldstone Capital Group have been appointed to handle the sale. Several weeks ago a sales prospectus was circulated among interested parties, including Viridian and Bord Gáis.

The bidding process is expected to be completed in the first quarter of 2006, probably at the same time as the plant comes into operation. The Commission for Energy Regulation, led by Tom Reeves, awarded a licence to the Tynagh Group almost three years ago. Under the licence, Tynagh has a 10-year deal to sell its output to the ESB. This guarantee is regarded as highly attractive by potential buyers. The other winner of a licence was Aughinish Alumina in Co Limerick.

Gama was among the early investors in the Tynagh project and last year it increased its stake from 40 per cent to 80 per cent after buying out the South African bank Investec. The other investors are associated with the private company Mountside Properties, which provided the Tynagh site to the consortium.