Alinta and AGL reach A$6.5 billion deal

The Australian energy companies divide up their assets in an amicable arrangement.

By Cherie Marriott

April 26, 2006

After months of standoff tactics and shareholder lobbying, Australian energy companies Alinta and AGL have reached a deal to bring together their retailing, generation and transmission businesses into two separate companies.

In an announcement to the Australian Stock Exchange on Wednesday, the companies confirmed that Alinta would gain control of AGLÆs transmission and asset management businesses for a total of A$6.5 billion. The expanded Alinta would be 55% owned by Alinta shareholders and 45% by former AGL shareholders.

Meantime, AGLÆs Energy business will be spun off into a separately listed company and owned 100% by AGL shareholders.

AGL Energy will also buy a 33% stake in AlintaÆs West Australian retail and cogeneration business...

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