RTRS:UPDATE 1-Canada's Atco to buy Western Australia Gas Network
(Reuters) - Canadian utility company Atco Ltd (ACOx.TO) said early Thursday it has signed an agreement to acquire Western Australia Gas Networks (WAGN) for about A$356 million ($380.8 million), a deal which will help it gain a foothold in Australia.
Atco said it will buy the utility from Westnet Infrastructure Group and will assume about A$644 million of WAGN debt. Including the assumption of debt and transaction costs the aggregate purchase price is about A$1 billion, the company said.
The equity portion of the purchase will be funded with existing cash reserves.
The proposed acquisition is subject to approval from the Australian foreign investment review board and is expected to close in the third quarter of 2011, the company said.
WAGN is the natural gas distribution utility company that serves the city of Perth and surrounding areas. ($1 = 0.935 Australian Dollars)
