SP AusNet to look at possible Allgas buy -


Electricity and gas utility SP AusNet is continuing its examination of a possible buy of Queensland gas distributor Allgas.
AusNet's Managing Director Nino Ficca told AAP that he expects the successful bidder to pay above the $300 million-value put on the assets of Allgas, which services about 80,000 customers in the state's south-east.
"You can imagine there will be some multiple paid, but it will be up to everyone to bid their own price," said Ficca.
"We think we'll put in a competitive offer for the assets."
A wholly-owned subsidiary of south-east Queensland energy company Energex Ltd, Allgas was purchased in 1998 for $250 million and at July 1 this year its regulated asset base was worth more than $300 million.
Mr Ficca said any deal would be a straight-forward commercial decision, not influenced by AusNet's previous relationship with Victorian gas market operator VENCorp, which has been appointed to oversee the Queensland gas retail market's move to full competition.
The Queensland government is believed to be keen to complete the sale of the distributor, by the end of the year or earlier.
Mr Ficca told security holders at SP AusNet's annual general meeting in Melbourne, the company, in which Singapore Power has a 51 per cent stake, is eying both organic growth and acquisitions.
He said the Queensland government's decision to privatise its energy infrastructure may provide opportunities for players such as SP AusNet.
"In addition to the strong organic growth profile of the business, SP AusNet is dedicated to evaluating future opportunities for investment and acquisition in Australia and New Zealand," Mr Ficca said.
SP AusNet last month said it had contacted organisers of the sale of Queensland's energy assets with a view to bidding for the Allgas distribution business.
Mr Ficca also told AAP that colder weather is having a positive effect on SP AusNet's revenue.
"The impact from weather is not a major impact but this year it is a positive," he explained.
SP AusNet, which listed in December last year, posted a net profit of $335.23 million for the year to March 31, 2006, which included $175.67 million of earnings from continuing operations.
At 1303 AEST SP AusNet shares were up three cents to $1.27.
© 2006 AAP