The Great Energy Alliance Corp (GEAC) shareholders - The Australian Gas Light Co (AGL), the Tokyo Electric Power Co (TEPCO) and a group of Commonwealth Bank-led investors - have paid A$3.48 billion for their assets.
According to AGL MD, Greg Martin, “This is an important milestone for GEAC and AGL in what has been a complex transaction over the last eighteen months.”
The sale has led to a debt restructure which aims to reduce debt exposure to around A$3 billion. GEAC has also made a bullet repayment of A$500 million in the restructured debt facilities.
The announcement from Horizon Energy, which had agreed to extend the bullet payment to 31 March 2004, also helped to facilitate the sale of the embattled Loy Yang Power Station.
This, according to Commonwealth Bank Group Executive (Institutional & Business Services) Michael Ullmer, means “Loy Yang A has been placed on a firmer footing and the uncertainty about the ownership of this significant Victorian asset has been resolved”.
In a joint statement, Loy Yang A’s new owners stated, “The GEAC shareholders, excluding AGL, have formed a separate entity called Loy Yang Marketing Holdings Pty Ltd whose wholly owned subsidiary, Loy Yang Marketing Management Pty Ltd, will act as an agent of Loy Yang Power to perform energy dispatch and trading functions.”
“Consistent with Federal Court undertakings, AGL will not have representation or economic interest in the Loy Yang Marketing Management or the Marketing Holding companies,” added the statement.
GEAC has a 32.5% stake in assets. The balance is held by the Commonwealth Bank-led investors, which includes MTAA, Westscheme and Mitsui & Co.
