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AGL 'doesn't see a lot of value' in buying NSW assets


Source: The Australian, 2 May 2013

AGL Energy played down interest in acquiring state-owned electricity generators worth up to $3 billion that are being offered for sale by the New South Wales government.

"We don't see a lot of value in those New South Wales assets and I will personally be quite surprised if we actually end up acquiring anything out of the privatisation process," chief executive Michael Fraser told a Macquarie conference in Sydney.

New South Wales put the generating assets up for sale last year as it sought to raise funds to plug a budget deficit, and protect its AAA credit rating. It is the second privatisation of electricity assets by the state since 2010, with the government seeking to sell the generators in separate packages this year and in 2014.

In late 2010, the former Labor government of the state sold electricity retail and generation assets for $5.3 billion, but held on to some others after trade unions protested over potential job losses.