Canadian utility Atco to acquire WAGN for about A$356 mn
07 Jul 2011
Canadian utility company Atco Ltd yesterday said that it will acquire Western Australia Gas Networks (WAGN) for about A$356 million ($381 million), to expand its presence in Australia.
Alberta-based Atco will acquire a 74.1-per cent stake in WAGN from WestNet Infrastructure Group through Aet&d Holdings No 1 Ltd. Atco will acquire the remaining 25.9-per cent interest in WAGN from Duet Group, giving Atco 100-per cent ownership in the company.
The asset will become a 100-per cent owned subsidiary of Canadian Utilities, an ATCO company.
Under the proposed deal, the aggregate purchase price including transaction costs, is approximately A$1.0 billion, including the assumption of approximately A$644 million of debt.
Atco Australia, a part of the Atco group of companies currently operates three power generation plants in Australia: the Osborne Cogeneration Facility in Adelaide, the Bulwer Island Cogeneration Facility in Brisbane and the highly energy efficient Karratha Power Plant, located in the Pilbara region in Western Australia.
WAGN is the natural gas distribution utility company providing service throughout the city of Perth including Mandurah, as well as the surrounding regions of Geraldton, Bunbury, Busselton, Kalgoorlie, Albany, Harvey, Pinjarra, Brunswick Junction and Capel.
