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AGL $19.39

AGL buys pulse $801m

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    254 Posts.

    AGL buys Pulse for $801m; $325m institutional issue
    09:14, Tuesday, 2 July 2002

    Sydney - Tuesday - July 2: (RWE) - AGL Company will acquire the
    Victorian businesses Pulse Energy and Utilimode for a total of $801
    million plus working capital of $79 million.
    AGL expects the acquisition to be earnings accretive in the
    first 12 months.
    It will be funded through existing debt facilities, a $325
    million institutional equity placement and a share purchase plan.
    Following the acquisition and equity raising, AGL expects its
    gearing to remain around 52 per cent.
    Both Standard & Poor's and Moody's have confirmed there will be
    no change to AGL's ratings of A and A2 (negative outlook) respectively.
    AGL's share purchase plan will provide eligible Australian and
    New Zealand shareholders registered July 8 the opportunity to subscribe
    for up to $3000 worth of shares at the institutional placement price.
    Pulse is 40 per cent owned by Shell Australia, 25 per cent by
    United Energy, 25 per cent by Energy Partnership and 10 per cent by
    Woodside Energy.
    The Pulse retail business services 1.1 million energy customer
    accounts in Victoria.
    Following the acquisition, AGL says it will retail electricity
    to more than 800,000 electricity customers and 520,000 natural gas
    customers in the state, making AGL the market leader in Victoria.
    It will provide energy products and services to over 1.4 million
    natural gas consumers and 1.7 million electricity consumers in eastern
    Australian markets.
    In total, AGL will hold about 30 per cent of the energy accounts
    in the region.
    AGL expects its shares to be reinstated to ASX trading tomorrow
    after it reports on the result of the placement to institutions.

    Any thoughts? price seems at the higher end of forecast range.

    I guess the placement price will be a major factor in affecting the share price when the resume trade

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