AGL Energy: Decision To Buy BG Assets May Take 2 More Months

AGL Energy Ltd. (AGK.AU) said Monday it may be over two months before it decides whether it will exercise an option to purchase A$1 billion in gas assets from Britain's BG Group PLC (BG.LN) despite an interest free period on the deal expiring yesterday.

"The key date to watch for is and remains April 15," an AGL spokesman said when asked when the options could be exercised.

AGL in October gained the option to purchase the assets, which include coal seam gas fields and a power station, when it agreed to sell its holding in Queensland Gas Company Ltd. into BG's takeover of that company.

The AGL spokesman referred to AGL's statement in October that said the option could be exercised within four months after BG acquired at least 50.1% of QGC.

As another condition of the option agreement, no interest was payable on the exercise price until Feb. 1.

From then, interest will be calculated at the original price times the London interbank offered rate plus 150 basis points.

By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com

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