Origin to sell Darling Downs Pipeline Network for $392M

Company News

by Jessica Amir

Origin Energy (ASX:ORG) has entered into an agreement to sell its Darling Downs Pipeline Network in Queensland for $392 million.

The electricity and gas company says the sale lifts its asset divestment to $1 billion since it announced its divestment program in September 2015.

The assets divestment also exceeded its original $800 million target.

Origin Energy says the sale to Jemena Gas Pipelines Holdings Pty Ltd, is due to be completed by 30 June 2017 and represents a 16.9 times FY2018 EBITDA multiple.

As a result, the company says it’s on track to achieve adjusted net debt of well below $9 billion by 30 June 2017.

Shares in Origin Energy (ASX:ORG) opened 1.29% lower to $7.63.
 

Jessica Amir

Finance News Network
Jessica presents the Market Outlook/Market at Midday and the Market wrap. She also presents ASX company news and interview CEOs. She joined FNN in January 2017. She has been in broadcast journalism for over six years. She has worked as a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She has also worked as a qualified financial planner.