AGL Energy to acquire Sydney Gas
AGL Energy (AGL) has also entered into pre-bid agreements with Sydney Gas's (SGL) two shareholders in respect of approximately 20% of SGL's issued shares. The acquisition delivers highly prospective exploration acreage in close proximity to AGL's core New South Wales gas market and consolidates permit ownership across the Sydney/Hunter and Gloucester basins and delivers AGL full operational control. The acquisition also provides the opportunity to extract operational synergies by concurrent development across the Sydney/Hunter and Gloucester basins. Of the acquisition price of A$171 million, approximately A$115 million is ascribed to the Hunter exploration permits. Michael Fraser, managing director of AGL, said: "Combining this acquisition with our recent purchase of the Gloucester basin acreage will give us the opportunity to further increase our ownership of gas reserves in our core New South Wales market. "The concurrent development of the Camden, Hunter and Gloucester gas projects will provide AGL with strategic benefits, optionality and a substantial source of long term wholesale gas supplies."