This follows substantial progress on the key conditions needed for the acquisition of Loy Yang A, namely the stamp duty liabilities.
The resolution of the condition precedent concerning stamp duty issues has involved an additional transaction cost to GEAC. Therefore, to facilitate the sale, the Loy Yang Power Partners, including Horizon, have agreed to accept a $12 million reduction in the purchase price.
"Given the complexity of this transaction, we are pleased with this development," AGL managing director Greg Martin said.
"AGL will continue to work with our GEAC partners, the Tokyo Electric Power Company (TEPCO) and Commonwealth Bank led investors, to finalise conditions precedent and conclude negotiations of the documentation required to achieve financial close. This is anticipated to be around 31 March 2004," Martin added.
The Share Sale Agreement remains on track to enable these final steps to be concluded.
