Origin Energy Ltd
(ASX:ORG) has confirmed that it has scored a deal worth around $3.25 billion to purchase some of the New South Wales government’s electricity assets.
Origin says it will acquire the retail businesses of Country Energy and Integral Energy for $2.3 billion, as well pay $950 million for a deal that will deliver Origin the output from power generator Eraring Energy.
Origin says it will fund the acquisition by new debt facilities which are expected to be refinanced with an equity raising over the next 12 months.
The transaction is due for completion by March 2011 and is expected to be accretive on an underlying earnings basis.
Origin chairman Kevin McCann says the acquisition is a transformational event in the growth of the company after which Origin will become Australia’s largest energy retailer.
Origin Energy posted a $680 million net profit in the 2010 financial year.
