AGL Energy Limited (AGL) today announced that it had entered into conditional agreements to increase its ownership interest in the Loy Yang A power station, and adjacent coal mine, from 32.54 per cent to 100 per cent.
The transaction will proceed by way of acquisition of the remaining shares in, and loan notes issued by, Great Energy Alliance Corporation Pty Limited (GEAC). GEAC is the owner of the 2,200MW Loy Yang A power station and a brown coal mine which supplies all the coal required to meet the current and future operating requirements of the power station.
The total consideration for the acquisition is $448 million.
Based on the terms of the agreed transaction, the enterprise value of GEAC is $3.1 billion.
The transaction is expected to complete in mid-2012 and is conditional on:
ACCC approval and removal of current Federal Court undertakings which limit AGL's ownership of GEAC to a maximum of 35 per cent; and GEAC having received, or having an enforceable right to receive, the first carbon assistance payment from the Federal Government.
AGL anticipates that the acquisition will be accretive to underlying earnings per share1 from FY2013.
For more information, please see the full release.
AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.