Bloomberg News

DUET to Sell Up to A$170 Mln in Stock for Acquisition

July 06, 2006

Diversified Utility & Energy Trusts, an energy-asset investment company known as DUET, plans to sell shares worth as much as A$170 million ($126 million) to existing investors to help fund an acquisition.

The company plans to sell about 64 million shares to help fund its 29 percent stake in the $1.59 billion acquisition of Pittsburgh utility owner Duquesne Light Holdings Inc. by funds managed by Macquarie Bank Ltd. and partners, Sydney-based DUET said today in an e-mailed statement. DUET will provide $300 million of equity for the purchase, it said.

DUET is the biggest shareholder in the buying group, which includes Macquarie Infrastructure Group, Industry Funds Management Ltd. and institutional investors. The group will pay $20 a share for Duquesne Light, 22 percent above the closing price on July 3, as well as assuming $148 million of preferred stock and about $1.26 billion in debt.

``Duquesne Light is a good fit within DUET's portfolio of electricity and gas assets,'' DUET Chief Executive Officer Peter Barry said in a statement lodged with the Australian Stock Exchange. The U.S. company will comprise about 32 percent of DUET's assets on completion of the transaction, he said.

The company, which is jointly managed by AMP Ltd. and Macquarie Bank Ltd., halted its shares from trading on the Australian Stock Exchange pending the share sale. The shares closed yesterday at A$2.78 and are likely to be sold at a price between A$2.60 and A$2.70, it said in a presentation lodged with the exchange.

The acquisition is expected to add to dividends to shareholders in the first full year, DUET said.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at

To contact the editor responsible for this story: Reinie Booysen at

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