The sale will be made pursuant to an agreement made as part of the merger and subsequent demerger of AGL Energy Limited (AGL) and Alinta in 2006.
Under the terms of the agreement, the recent change in control of Alinta triggered AGL’s right to either acquire Alinta’s 67% interest in AlintaAGL at a price nominated by Alinta or sell its 33% to Alinta at a pro rata price.
Michael Fraser, managing director of AGL, said: The price achieved represents an outstanding return for AGL in a very short period. The price offered by Alinta substantially exceeds the valuation placed on the investment by AGL and will result in a pre-tax profit of A$125 million on the investment in just over 12 months. The transaction also demonstrates a disciplined approach to the use of capital across the business to maximize returns on investment for our shareholders.
The sale is expected to be immediately earnings per share (EPS) accretive however there is no change to AGL’s revised 2008 earnings guidance of A$330 to A$360 million. Completion is scheduled to occur on December 31, 2007 and the funds will initially be used to reduce syndicated debt.
