AGL will raise $1.5bn to buy Tepco and other investors out of Loy Yang, a brown coal-powered power station in Latrobe Valley, Victoria. Source: The Australian
AGL Energy plans to raise $1.5 billion to buy all of Australia's biggest brown coal power station and the nation's biggest coal mine, and said that it was confident of getting regulatory approval for the deal.
Under the deal, AGL will pay $448 million to buy Tokyo Electric Power (Tepco) and other joint venture partners out of the Loy Yang power station and mine in Victoria, taking AGL’s stake from 32.5 per cent to 100 per cent.
Japan's biggest utility, which holds currently 32.5 per cent of Loy Yang, is reviewing assets around the world as it strives to repair a balance sheet rocked by the Fukushima nuclear disaster caused by an earthquake and tsunami last year.
AGL had flagged an increase in its ownership of Loy Yang, and its purchase of the Tepco stake was expected. But the price paid and the move to 100 per cent ownership was a surprise.
AGL must receive approval from the Australian Competition and Consumer Commission (ACCC) to remove Federal Court undertakings that limit its ownership of Loy Yang to 35 per cent.
The Australian
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