AGL buys pulse $801m

AGL buys Pulse for $801m; $325m institutional issue
09:14, Tuesday, 2 July 2002

Sydney - Tuesday - July 2: (RWE) - AGL Company will acquire the
Victorian businesses Pulse Energy and Utilimode for a total of $801
million plus working capital of $79 million.
AGL expects the acquisition to be earnings accretive in the
first 12 months.
It will be funded through existing debt facilities, a $325
million institutional equity placement and a share purchase plan.
Following the acquisition and equity raising, AGL expects its
gearing to remain around 52 per cent.
Both Standard & Poor's and Moody's have confirmed there will be
no change to AGL's ratings of A and A2 (negative outlook) respectively.
AGL's share purchase plan will provide eligible Australian and
New Zealand shareholders registered July 8 the opportunity to subscribe
for up to $3000 worth of shares at the institutional placement price.
Pulse is 40 per cent owned by Shell Australia, 25 per cent by
United Energy, 25 per cent by Energy Partnership and 10 per cent by
Woodside Energy.
The Pulse retail business services 1.1 million energy customer
accounts in Victoria.
Following the acquisition, AGL says it will retail electricity
to more than 800,000 electricity customers and 520,000 natural gas
customers in the state, making AGL the market leader in Victoria.
It will provide energy products and services to over 1.4 million
natural gas consumers and 1.7 million electricity consumers in eastern
Australian markets.
In total, AGL will hold about 30 per cent of the energy accounts
in the region.
AGL expects its shares to be reinstated to ASX trading tomorrow
after it reports on the result of the placement to institutions.




Any thoughts? price seems at the higher end of forecast range.

I guess the placement price will be a major factor in affecting the share price when the resume trade