UPDATE: Moody's affirms DUET Group ratings after takeover bid

DUET Group is a part-owner of WA's DBNGP pipeline.

DUET Group is a part-owner of WA's DBNGP pipeline.

UPDATE: Moody’s has affirmed its rating of DUET Group’s portfolio of companies after the firm announced yesterday a 100 per cent buyout of Energy Developments Limited.

An investor statement published in the wake of yesterday’s $1.4 billion announcement states that DUET’s Energy Partnership (Gas) Pty Ltd, its 80 per cent stake in DBNGP Finance Co Pty Ltd and 66 per cent stake in United Energy Distribution Pty Ltd will all retain stable ratings.

“Our central scenario is that DUET’s solid track record of providing support to the operating assets’ financial profiles when required will continue,” said Mary Anne Low, a Moody’s Analyst.
Ms Low added that the acquisition, which will be funded by a $1.67 billion equity issuance and voted on by EDL shareholders in October, will not increase DUET’s debt or future investment requirements.

Energy utility owner, DUET Group yesterday announced it will acquire power generation firm, Energy Developments Limited for $1 billion.

A statement from DUET Group to the ASX dated 20 July confirmed the proposed purchase arrangement at $8 per share.

The proposal represents a 3.6 per cent premium on Energy Developments’ Friday share price close and an estimated market capitalisation increase to $1.9 billion.

Monday’s statement urged shareholders to vote in favour of the DUET proposal, stating that the bid is in the “best interest” of the business.

ENL operates remote energy, LNG, CNG and landfill gas power generation sites across Australia, the US and Europe.

Energy Developments Chairman Rob Koczkar, said the company’s board concluded that DUET’s bid was the most “attractive option to realise best value for shareholders”.

EDL shareholders will vote on the proposal at a meeting expected to be held early October.

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