Duet buys Alcoa pipeline for A$205m
PERTH (miningweekly.com) – Energy asset owner Duet Group has struck a deal with aluminium producer Alcoa to acquire the remaining 20% interest in the Dampier to Bunbury natural gas pipeline (DBP) for A$205-million.
Duet CEO David Bartholomew said on Thursday that the acquisition of the remaining interest in the DBP further simplified the group structure, adding that the asset was a core business for Duet.
“After completion of the acquisition, we will maintain our close relationship with Alcoa, and expect that our management of DBP’s operations, cash flows and capital structure will continue to enhance the value of DBP.”
The DBP is Western Australia’s principal gas transmission pipeline and is the only pipeline connecting the natural gas reserves of the Carnarvon and Browse basins on the North West Shelf with industrial, commercial and residential customers in Perth and the surrounding regions.
To fund the acquisition, Duet has launched a A$200-million capital raising through a share placement and non-underwritten stapled security purchase plan.
Shares would be offered at A$2.20 each, representing a 3.5% discount to the closing price of Duet shares on March 30.
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