AGL play for sway
AGL is negotiating to raise its stake in Victoria's Loy Yang A power station.
AGL is negotiating to raise its stake in Victoria's Loy Yang A power station.AGL holds a 32.54 per cent stake in the power station, but is blocked from raising its stake to more than 35 per cent due to a court order.Tokyo Electric Power Co also holds a 32.54 per cent stake but is moving to sell several assets following the earthquake and tsunami in April last year that crippled its Fukushima nuclear complex in northern Japan. It is yet to confirm that it will 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 the remaining 2.5 per cent.AGL told the ASX yesterday it was in discussions with the 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, . . . and satisfaction of outstanding issues" such as winning approval from the Australian Competition and Consumer Commission and the removal of Federal Court undertakings which limit its ownership to 35 per cent.