ACCC allows AGL to proceed with acquisition of Loy Yang A power station and adjacent coal mine

AGL announces $900 million 1 for 6 pro rata renounceable entitlement offer AGL

Energy Limited (AGL) today announced that the Australian Competition & Consumer Commission (ACCC) has advised the company that it can proceed with the acquisition of the Loy Yang A power station and adjacent coal mine. AGL will now apply to the Federal Court for removal of certain undertakings and expects completion around 30 June 2012.

Subsequently, AGL today announced it is seeking to raise approximately $900 million via a fully underwritten 1 for 6 pro rata accelerated renounceable entitlement offer with retail entitlements trading (Entitlement Offer).

The key details of the Entitlement Offer are:

  • Fully underwritten 1 for 6 pro rata accelerated renounceable entitlement offer with retail entitlements trading to raise approximately $900 million
  • Offer price of $11.60 per new share
  • Institutional Entitlement Offer is accelerated
  • Retail entitlements may be traded on ASX from Tuesday, 29 May 2012 to Tuesday, 12 June 2012

The offer price of $11.60 per new share represents:

  • a 22.3% discount to last close;
  • and a 19.7% discount to the theoretical ex-rights price (TERP).1

AGL's CEO and Managing Director Michael Fraser said: "This acquisition represents a unique opportunity to acquire a high quality generation asset and a long term fuel resource. The acquisition is expected to be accretive to underlying earnings per share from FY2013 and the entitlement offer presents an excellent opportunity for AGL shareholders to further increase their investment in AGL as part of a transaction that AGL considers highly attractive."

The theoretical ex-rights price is the theoretical price at which AGL shares should trade immediately after the ex-date for the Entitlement Offer. The theoretical ex-rights price is a theoretical calculation only and the actual price at which AGL shares trade immediately after the ex-date for the Entitlement Offer will depend on many factors and may not be equal to the theoretical ex-rights price.

About AGL

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.