Australian energy utility firm Duet Group to buy Energy Developments for $1.41 bn
20 July 2015
Australian energy utility company Duet Group Ltd today struck a deal to buy supplier of waste natural gas Energy Developments Ltd (EDL) for A$1.92 billion ($1.41 billion).
Under the terms of the deal agreed by boards of both companies and EDL's largest shareholders, Duet Group has offered to pay A$8-a-share in cash, a 3.6-per cent premium to Energy Developments Friday closing price of A$7.72.
The offer values EDL's equity at A$1.407 billion, and A$1.92 billion including debt.
Duet plans to fund the acquisition by launching an A$1.67 billion equity raising.
EDL's major shareholders are Greenspark Power Holdings with a 67.1-per cent stake, Investors Mutual with 9.6 per cent, Coopers Investors Pty Ltd with 4.6 per cent.
EDL manages an international portfolio of over 900 MW of power generation facilities in Australia, the US and Europe, utilising a range of fuel sources including remote energy, natural gas and diesel, landfill gas and waste coal mine gas.
EDL's worldwide operations produced approximately 4 million MWh of energy, enough to power over 650,000 homes; its landfill gas power stations around the world, and waste coal mine power stations in Australia avoided approximately 13 million tonnes of carbon dioxide equivalent of GHG emissions, equivalent to removing 3.8 million cars from the road.
EDL chairman, Rob Koczkar, said, ''In recent years, Energy Developments has achieved significant growth in the business through expansions and acquisitions which is recognised by the Proposal.''
Greg Pritchard, EDL's managing director said, ''The proposal from DUET recognises the attractive growth outlook for the business, the strong operational performance and is a robust endorsement of management's ability to deliver against the strategic plan.''
With a market cap A$3.5 billion, ASX-listed Duet Group owns and operates energy utility businesses.