QLD FUTURE FUND TOPS $3B WITH AGL SALE: BEATTIE
Published Monday, 19 February, 2007 at 09:09 AM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
Minister for Mines and Energy
The Honourable Geoff Wilson
Brisbane: The Queensland Government’s already successful energy sales process powered to a close today with Powerdirect Australia’s sale to AGL Energy for an impressive $1.203 Billion.
“By any measure this is an excellent result for the State and provides a fantastic foothold for AGL in Queensland,” Premier Peter Beattie said.
“AGL’s decision to buy Powerdirect Australia and the price paid represent a bold statement about the business and the up-beat conditions here,” he said.
It means that in total the energy sales process has grossed more than $3 billion for the Government to reinvest back through the Queensland Future Growth Fund.
“This is another massive vote of confidence in Queensland.”
Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh said that AGL is a successful energy company and a welcome competitor in the State’s electricity market.
Powerdirect Australia is the former competitive retailing arm of Ergon Energy combined with over 390,000 South-East Queensland electricity customers transferred from Sun Retail, ENERGEX’s former retail business.
In total Powerdirect includes over 396,000 mainly residential, rural and SME (small to medium sized enterprise) accounts in Queensland, 35,000 residential customers in other states, some 3,600 large commercial and industrial customer accounts, located mainly in Queensland, and around 38,000 small to medium sized contestable market customers located mainly in southern States.
In November 2006, as part of the restructuring of the South-East Queensland electricity market, the approximately 390,000 residential and small business customers in northern parts of the region were transferred to Powerdirect Australia from the former Energex retail business Sun Retail.
“The Government split the old customer base to boost competition when the market opens up under full retail competition [begins 1 July 2007],” Ms Bligh said.
Minister for Mines and Energy Geoff Wilson said the Powerdirect Australia sale was an important part of the Government’s strategy to increase competition.
“The splitting of the electricity customer base through the sale of Sun Retail and Powerdirect Australia boosts the number of competitors in the market, and will bring benefits to consumers through better service choices and price competition,” said Mr Wilson.
Powerdirect Australia has a workforce of 85 staff in Brisbane and another 100 in Melbourne. The sale agreement protects existing terms and conditions of employees and maintains the EBA until February 2008.
Powerdirect Utility Services Pty Ltd is also included in the sale. This company is comprised of four small generation plants including biomass cogeneration plants in premises such as sugar mills. Powerdirect Australia sells energy directly to the customers and trades surplus energy into the electricity grid. Powerdirect Utility Services does not have any staff and contracts for the provision of maintenance and operations of its plants.
AGL is Australia’s largest integrated energy retailer with a presence in the energy markets of NSW, ACT, Victoria, South Australia, Queensland and Western Australia. Following the acquisition of Powerdirect, AGL will hold approximately 4.1 million gas and electricity customer accounts across Australia.
In addition to the Powerdirect acquisition and the Sun Gas business AGL acquired from the Queensland Government in November, AGL also has substantial investments in Queensland in upstream gas reserves at Moranbah, a proposal to build a 370 megawatt gas-fired power station at Townsville and an offer to take up to a 30% interest in the Queensland Gas Company.
AGL Managing Director Mr Paul Anthony said: “AGL is delighted to have secured an entry into Australia’s fastest-growing energy market through our acquisitions of Powerdirect and Sun Gas. We congratulate the Queensland Government in facilitating a smooth sale process.”
“Powerdirect provides AGL with a substantial exposure to the Queensland electricity market and together with the Sun Gas business, delivers an important platform from which AGL will continue to competitively grow our energy business,” said Mr Anthony.
Today’s sale is the final sale announcement for the Queensland Government’s energy sales process which began in late April 2006.
Ms Bligh said the original April 2006 target total was “expected to be in excess of $1 Billion”.
“So we can reasonably say this is a very successful sales process that has met its deadlines and exceeded its targets,” she said.
“The sale of Powerdirect Australia, and the three energy sales that preceded it, in Allgas Energy, Sun Retail and Sun Gas, have been completed in an amazingly short time with some outstanding results.
“The businesses involved, the sales team, the advisers and all the bidders should be congratulated on what has been achieved here.”
The energy sales process was coordinated by a team of government officials with assistance from lead advisers Rothschild Australia, legal advisers Allens Arthur Robinson and taxation and financial advisors Ernst & Young.
The Queensland Future Growth Fund will receive sales proceeds less stamp duty, and related sales costs and adjustments and any relevant debt repayments.
This money will be reinvested into the Queensland economy through the Queensland Future Growth Fund in areas such as clean coal technology, water and other transport and energy infrastructure.
Media Contact: Premier’s Office 3224 4500
Deputy Premier’s Office 3224 4379.
“By any measure this is an excellent result for the State and provides a fantastic foothold for AGL in Queensland,” Premier Peter Beattie said.
“AGL’s decision to buy Powerdirect Australia and the price paid represent a bold statement about the business and the up-beat conditions here,” he said.
It means that in total the energy sales process has grossed more than $3 billion for the Government to reinvest back through the Queensland Future Growth Fund.
“This is another massive vote of confidence in Queensland.”
Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh said that AGL is a successful energy company and a welcome competitor in the State’s electricity market.
Powerdirect Australia is the former competitive retailing arm of Ergon Energy combined with over 390,000 South-East Queensland electricity customers transferred from Sun Retail, ENERGEX’s former retail business.
In total Powerdirect includes over 396,000 mainly residential, rural and SME (small to medium sized enterprise) accounts in Queensland, 35,000 residential customers in other states, some 3,600 large commercial and industrial customer accounts, located mainly in Queensland, and around 38,000 small to medium sized contestable market customers located mainly in southern States.
In November 2006, as part of the restructuring of the South-East Queensland electricity market, the approximately 390,000 residential and small business customers in northern parts of the region were transferred to Powerdirect Australia from the former Energex retail business Sun Retail.
“The Government split the old customer base to boost competition when the market opens up under full retail competition [begins 1 July 2007],” Ms Bligh said.
Minister for Mines and Energy Geoff Wilson said the Powerdirect Australia sale was an important part of the Government’s strategy to increase competition.
“The splitting of the electricity customer base through the sale of Sun Retail and Powerdirect Australia boosts the number of competitors in the market, and will bring benefits to consumers through better service choices and price competition,” said Mr Wilson.
Powerdirect Australia has a workforce of 85 staff in Brisbane and another 100 in Melbourne. The sale agreement protects existing terms and conditions of employees and maintains the EBA until February 2008.
Powerdirect Utility Services Pty Ltd is also included in the sale. This company is comprised of four small generation plants including biomass cogeneration plants in premises such as sugar mills. Powerdirect Australia sells energy directly to the customers and trades surplus energy into the electricity grid. Powerdirect Utility Services does not have any staff and contracts for the provision of maintenance and operations of its plants.
AGL is Australia’s largest integrated energy retailer with a presence in the energy markets of NSW, ACT, Victoria, South Australia, Queensland and Western Australia. Following the acquisition of Powerdirect, AGL will hold approximately 4.1 million gas and electricity customer accounts across Australia.
In addition to the Powerdirect acquisition and the Sun Gas business AGL acquired from the Queensland Government in November, AGL also has substantial investments in Queensland in upstream gas reserves at Moranbah, a proposal to build a 370 megawatt gas-fired power station at Townsville and an offer to take up to a 30% interest in the Queensland Gas Company.
AGL Managing Director Mr Paul Anthony said: “AGL is delighted to have secured an entry into Australia’s fastest-growing energy market through our acquisitions of Powerdirect and Sun Gas. We congratulate the Queensland Government in facilitating a smooth sale process.”
“Powerdirect provides AGL with a substantial exposure to the Queensland electricity market and together with the Sun Gas business, delivers an important platform from which AGL will continue to competitively grow our energy business,” said Mr Anthony.
Today’s sale is the final sale announcement for the Queensland Government’s energy sales process which began in late April 2006.
Ms Bligh said the original April 2006 target total was “expected to be in excess of $1 Billion”.
“So we can reasonably say this is a very successful sales process that has met its deadlines and exceeded its targets,” she said.
“The sale of Powerdirect Australia, and the three energy sales that preceded it, in Allgas Energy, Sun Retail and Sun Gas, have been completed in an amazingly short time with some outstanding results.
“The businesses involved, the sales team, the advisers and all the bidders should be congratulated on what has been achieved here.”
The energy sales process was coordinated by a team of government officials with assistance from lead advisers Rothschild Australia, legal advisers Allens Arthur Robinson and taxation and financial advisors Ernst & Young.
The Queensland Future Growth Fund will receive sales proceeds less stamp duty, and related sales costs and adjustments and any relevant debt repayments.
This money will be reinvested into the Queensland economy through the Queensland Future Growth Fund in areas such as clean coal technology, water and other transport and energy infrastructure.
Media Contact: Premier’s Office 3224 4500
Deputy Premier’s Office 3224 4379.