09/04/2009 - 13:50

Pacific Energy finalises $98m package

09/04/2009 - 13:50

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Perth-based Pacific Energy says it will settle its $77 million acquisition of Kalgoorlie Power Systems in less than a fortnight after it received commitments for a $98 million funding package.

Pacific Energy finalises $98m package

Perth-based Pacific Energy says it will settle its $77 million acquisition of Kalgoorlie Power Systems in less than a fortnight after it received commitments for a $98 million funding package.

Late last year, Pacific Energy announced a scrip and cash deal to acquire Kalgoorlie Power Systems, which owns a suite of power stations in Western Australia and the Northern Territory.

KPS is owned by Ken Hall who started the business in 1981. KPS' clientele includes Newmont Mining, Xstrata and Norilsk Nickel.

Pacific said the funding package includes $20 million of shares priced at 25 cents per share, a $50 million issue of convertible securities subscribed by Pacific Road Resource Funds and Mr Hall and a $28 million loan facility from the Commonwealth Bank.

The funding is conditional on the settlement of the KPS acquisition which is planned to take place around April 20.

Under the acquisition deal, Pacific has agreed to make a cash payment of $49.5 million, issue a $15 million zero coupon, two year converting note and also issued $12.5 million worth of Pacific shares to Mr Hall.

Pacific added that funds left over from the KPS purchase will be used for future growth and working capital.

Further comment from Pacific Energy was being sought at time of publishing.

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