AGL confirms purchase of Pulse Energy for $A801 million

By NZPA

Tuesday 2nd July 2002

The Australian Gas Light Company (AGL) today confirmed it has entered into an agreement to acquire the Victorian businesses Pulse Energy and Utilimode for $A801 million ($NZ933.7 million), plus working capital of $A79 million.

AGL is the majority shareholder in New Zealand's Natural Gas Corp.

"The acquisition price to be paid covers the two other associated businesses, Utilimode and Edgecap," AGL said in a statement to the Australian Stock Exchange.

The Pulse acquisition will provide a lift of over $A1 billion of revenue annually to AGL.

"We fully expect the acquisition to be earnings accretive in the first 12 months," AGL managing director Greg Martin said.

The acquisition will be funded through a combination of existing debt facilities, a $A325 million institutional equity placement and a share purchase plan.

"The ASX trading halt in AGL shares will continue through July 2, 2002 pending completion of the institutional placement," AGL said.

"It is expected that trading in AGL shares will recommence on July 3, 2002 following an announcement of the result of the placement."

Following the acquisition and the equity raising, the company's gearing is estimated to remain around 52 percent.

Both Standard and Poor's and Moody's Investors Service have reviewed the acquisition and funding details and have confirmed there will be no changes to AGL's current ratings of A and A2 (outlook negative) respectively.

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