DJ AGL Companies Will Have Constrained Balance Sheets After Demerger -- Market Talk
2156 GMT - AGL Energy's planned separation of its retail business from its coal-fired power generation assets won't provide either with significant capacity for growth, UBS says. That's because both companies--AGL Australia and Accel Energy--will have constrained balance sheets. UBS now sees a lower risk that more equity will be needed before the demerger happens, as AGL has scrapped its special dividend and will underwrite its dividend reinvestment plan. However, the bank says its "refreshed credit analysis still does not expect either AGL Australia or Accel Energy to have balance sheet capacity to support any material growth investments following the demerger." (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
October 04, 2021 17:56 ET (21:56 GMT)
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