STOCK EXCHANGE ANNOUNCEMENTTAKEOVER OFFER BY AGLThe Board of...

STOCK EXCHANGE ANNOUNCEMENT
TAKEOVER OFFER BY AGL
The Board of Sydney Gas Ltd (SGL) has unanimously agreed to recommend acceptance of
an unsolicited bid by AGL Energy Limited (AGL) for its shares at 42.5 cents a share in the
absence of a superior proposal. Each of the Directors of SGL intends to accept the bid for
any shares owned or controlled by them, again in the absence of a superior proposal.
Recently, AGL acquired the Gloucester Basin, a significant coal seam gas opportunity in
near proximity to similar tenements held by SGL in the Hunter Valley. The SGL Board
considers that these are significant opportunities for the long term supply of gas in NSW
and, while they have complete confidence in them as prospects, their long term
development is best placed in the hands of AGL as AGL has the capacity to meet the
significant funding requirements to ensure the tenements are fully developed. In
recommending the bid for its shares, the SGL Board believes it has considered the best
interests of shareholders and the company’s employees.
SGL will prepare and lodge a target statement with ASIC within 7 days of the despatch of
the AGL offer and will then send the target statement to all SGL shareholders.