Australia's AGL to sell Chilean gas distribution business for 90 million usd

SYDNEY, Mar 25, 2008 (Thomson Financial via COMTEX) -- AGLNF | news | PowerRating | PR Charts -- Australia's largest energy retailer, AGL Energy, said Tuesday it will sell its Chilean gas distribution business GasValpo and associated assets to a consortium of Australian superannuation funds for 90 million US dollars.

Under the deal, 26 million dollars will be used to refinance GasValpo's net bank debt, while 64 million dollars will be used to reduce AGL's bank debt, the company said.

The sale, expected to be completed by April 30, will be neutral for AGL and will not change its year to June earnings guidance of 330-360 million Australian dollars.

AGL said the sale on a pre-tax basis will be a loss of approximately 10 million dollars although the benefit of a tax capital loss will result in a small post-tax gain.

(1 US dollar = 1.10 Australian dollars)

Source: Ramblernews