CLP, NSW Origin buy energy assets for $ 5.3 billion, outbidding AGL Energy

CLP Holdings Ltd., Hong Kong's largest power supplier, and Origin Energy Ltd. won the assets of the electricity in the state of New South Wales in Australia for $ 5.3 billion, outbidding AGL Energy Ltd. to get about 3 million customers.

TRUenergy Holdings Pty, a unit of CLP is the purchase of assets including EnergyAustralia dealer for 2.04 billion U.S. dollars (2020 million dollars), the state government said today. Source of earnings Country Energy and Integral Energy, plus the right to sell the production of state-owned power station Eraring, for 3.25 billion U.S. dollars.

The purchases will double the number of retail customers in Australia CLP has 2.8 million, while Sydney-based Origin said it will become the largest energy supplier with a jump of 50 percent over users. The agreement is the culmination of a 12-year process has caused division in the state and contributed to the departure of two prime ministers since 2008.

"Many people said this day would never come," said Eric Roozendaal, Treasurer of the country's most populous state, in a press conference today in Sydney.

Origin rose 1.8 percent to $ 17.10 in Sydney for the 4:10 pm closing. AGL rival power supplier, fell the most in almost two years after the night saying that his failed attempt, fell 1.1 percent to $ 14.91, extending the previous session's 4.9 percent fall. The S & P / ASX 200 was little changed. CLP fell 1.1 percent to $ 63.25 in Hong Kong in Hong Kong, the Hang Seng index city fell nearly 2 percent.

"Cold Light of Day"

AGL said it will intensify a campaign to lure businesses out of competition after missing the assets. The Sydney-based company plans to more than double its customer base in New South Wales, adding up to 500,000 electric bills over the next three years. AGL said its state property offers fell well short of the winning bids.

"It's always exciting to win, but when we look in the cold light of day it would have had to pay to acquire the business, I have no regrets at all," AGL CEO Michael Fraser said in a conference call.

New South Wales said the sale will strengthen its finances, increase competition in the electricity market and no financial resources to schools, transport and hospitals.

The state is still in talks over the possible sale of rights to trade in energy produced by Macquarie Generation and Delta Costa, known as "gentrader" contracts, and intends to complete the transactions in February, Roozendaal said. New South Wales aimed to complete all operations at the end of the year.

Midnight Agreement

The sale has been confronted by the continuation of "challenges", Peter Achterstraat, the Auditor General, has said. Nathan Rees was overthrown and replaced as prime minister Kristina Keneally A year ago, partly because of divisions within the ruling Labour Party on the transaction. Rees replaced Morris Iemma, in 2008, after failing to win approval of its plan to sell assets.

Discontent over the process continued until the agreements were completed about midnight last night. Eight directors leave the board of state power involved in the sale after refusing to take a decision stating that the trading transactions "non-market" Roozendaal said.

The sale of energy "is carried out to ensure that taxpayers would not be responsible for the construction of future power generation," he said. "We have. We wanted a more competitive retail market. We have succeeded. The retention value of these assets is much lower than what we have received from them."

Origin said it is paying $ 1,282 for each customer. That is "more or less in line with previous agreements," said Xavier Grunauer, Sydney-based analyst at Nomura Holdings Inc.

"Golden Opportunity '

"I do not think the market is very concerned about the price," he said. "It's a golden opportunity to grab market share. The key question is how far to increase."

Origin, also continuing with plans for a liquefied natural gas project in Queensland state may try to raise up to $ 1,750,000,000 sales actions according to Grunauer.

Country Energy and Integral Energy together were valued at about U.S. $ 1.8 billion, while the Eraring assets worth $ 1.1 billion, said Marie Miyashiro, a Sydney-based analyst at Citigroup Inc . She EnergyAustralia valued at $ 1.3 billion.

"I think TRUenergy is the winner, even though they have taken a substantial risk to pick up customers aggressively pursued by others," said David Leitch, a Sydney-based analyst at UBS AG in Sydney, by telephone today day. "They become a very viable third force in Australia."

EnergyAustralia buy and sell rights to energy production will join Western Delta HK $ 389,000,000 ($ 50 million) annual net income of CLP, 4 percent of the estimated gain for the year 2011, Citigroup estimated a report. The agreement has a stake in the Australian market of CLP to about 20 percent, he said.

TRUenergy sales

TRUenergy a turn out is more attractive after the transaction, according to Citigroup. CLP, which also bought three development sites power station has been considering an initial public offering in Australia for TRUenergy, CEO Andrew Brandler, said in September.

Origin, which will grow to 4.6 million customers, is the acquisition of the retail of U.S. $ 2.3 billion and pay $ 950 million in assets Eraring he said. Operations are expected to be completed on 1 March.

Origin plans to finance the deal with the new debt is expected to be partly refinanced through a stock offering in 12 months, he said.

The Sydney-based company has organized a signed 2.2 billion U.S. dollars a bridge loan due in one or two years, and a A $ 1,100,000,000 loan to three to five years, also signed, to be sold to other lenders early 2011, according to a statement submitted to the Stock Exchange of Australia.

CLP Australia Finance signed a 1.6 billion U.S. dollars of loans for the acquisition of May 2012 tour.