ATCO Signs Agreement to Acquire Western Australia Gas Networks
ATCO Group of Calgary announced that it has signed a conditional agreement to acquire Western Australia Gas Networks (WAGN) from WestNet Infrastructure Group from Perth, Australia. WAGN is the natural gas distribution utility company that serves the western Australian city of Perth and surrounding areas. The terms of the arrangement will see ATCO acquire a 74.1% interest in WAGN from WestNet Infrastructure Group through AET&D Holdings No 1 Ltd. ATCO will acquire the remaining 25.9% interest in WAGN from DUET Group, giving ATCO 100% ownership in WAGN. The asset will become a 100% owned subsidiary of Canadian Utilities, an ATCO company. The aggregate purchase price of the proposed acquisition, including transaction costs, is approximately A$1 billion, including the assumption of approximately A$644 million of debt. The balance of the aggregate purchase price will be funded with existing cash reserves. WAGN connects more than 620,000 customers through 12,800 km of natural gas pipelines and associated infrastructure.