Under the terms of sale, the purchasers will refinance GasValpo’s net bank debt of $26 million. The remaining sale proceeds of $64 million, together with approximately $10 million of cash from pre-completion dividends and payments of interest on intra-group loans, will be applied to reduce AGL’s bank debt.
Michael Fraser, AGL’s managing director, said: GasValpo was always going to be the most challenging non-core asset for us to divest so it is particularly pleasing we have been able to start with the sale of this asset. AGL expects the sale will result in a small post-tax profit.
