AGL in talks about increasing stake in Victorian power station
AGL is negotiating to raise its stake in Victoria's Loy Yang A power station, although it was circumspect yesterday on its prospects for success.
AGL is negotiating to raise its stake in Victoria's Loy Yang A power station, although it was circumspect yesterday on its prospects for success.AGL holds a 32.5 per cent stake in the power station, one of the largest in Australia, although it is blocked from raising its stake to more than 35 per cent due to a court order.Tokyo Electric Power Co also holds a 32.5 per cent stake in the power station. It is moving to sell a range of assets, from property and securities holdings, through to other investments, following a severe earthquake and tsunami in April last year which crippled its large Fukushima complex of nuclear power stations in northern Japan.Tokyo Electric is yet to confirm whether it is to sell the Loy Yang stake.Other shareholders in Loy Yang A include Ratch Australia Corp with 14.03 per cent, MTAA with 12.61 per cent, AustralianSuper with 5.78 per cent and Statewide Superannuation with 2.5 per cent.AGL told the ASX yesterday it is in discussions with other shareholders in Loy Yang A about the future ownership structure of GEAC, through which the power station is held."AGL may increase its ownership interest in GEAC but this would be contingent upon any transaction providing returns in excess of AGL's investment hurdle rate, an accretion to underlying earnings per share from the first year of ownership, and satisfaction of outstanding issues," it said.