AGL expands retail base
AGL Energy has entered into agreements for the outright acquisition of 19.9 per cent of the issued shares of Australian Power and Gas Company (APG).
APG is an energy retailer offering plans in Victoria, Queensland and New South Wales.
The company said in a statement today it intends to make an off-market takeover offer to acquire all of the issued shares of APG (APG Shares) that it does not currently have an interest in at $0.52 cash per share.
The 19.9% interest is to be acquired by AGL from each of APG’s three largest shareholders – Nippon Gas, The Cobra Group and Poole Interests.
An independent board committee established by APG to evaluate the transaction has recommended that APG shareholders accept the offer, in the absence of a superior proposal.
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The proposed price represents a 33 per cent premium to APG’s closing price of 39.0 cents on Friday.
AGL’s Managing Director Michael Fraser said the deal adds to the company’s retail position.
“The acquisition of APG will further strengthen AGL’s retail business,” he said.
“It will increase our total customers by approximately 10 per cent, effectively achieving our goal of 800,000 electricity customers in New South Wales.
“We will create value by leveraging our lower cost-to-serve across the APG customer base. The transaction provides compelling value to APG shareholders and will enable APG customers to obtain enhanced products and services.”
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