# AGL - The Australian Gas Light Company



## markrmau (19 October 2004)

Make up your own mind on this one (I hold AGL). In the agm presentation, it states they are seeking a ruling from ATO for returning proceeds of NGC sale to shareholders.

However, currently agl down almost 1%


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## GreatPig (31 October 2005)

*Re: AGL*

AGL up 5.3% this morning to a new all-time high of $15.27 (as I write).

Today's announcements include a pending demerger to two new entities, and the acquisition of Southern Hydro.

I've been holding this for a few months now, during which time it's mostly been pretty flat. Hopefully today's boost will hold.

Cheers,
GP


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## GreatPig (2 November 2005)

*Re: AGL*

Back down to $14.75 now. That was short-lived.

Boring... :goodnight

Cheers,
GP


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## happytrader (2 November 2005)

*Re: AGL*

He Greatpig

I hope you took your reward for being patient. That would have been at least a 100% return on an option trade if you had bought anytime last week and sold on Monday or Tuesday. Wouldnt have minded that one. Since Im a bit one eyed I miss whats going on. If you did'nt, next time.

Cheers
Happytrader


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## GreatPig (28 December 2005)

*Re: AGL*

AGL is still pushing through the roof.

Which is fine, since I'm holding , but anyone got any idea why it's become so popular these last couple of months?

Cheers,
GP


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## clowboy (28 December 2005)

*Re: AGL*

hey GP

I have an idea





Cuase I sold mine


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## Stan 101 (25 January 2006)

Interesting one, there is a reasonable div on offer though the price is dropping here... Does anyone have any thoughts? I jumped out at $17.90 while it was on offer. will consider stepping back in at about 17.60 if I get the chance...


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## visual (25 January 2006)

agl,interesting!
sold mine after the capital return The intelligent investor had a sell on it for weeks,apparently their debt was increasing heavily and they didnt think it was healthy,so what do you know it races up,so much for expert opinions

APA a spin off from agl is also doing great yep sold that too.
 :swear:


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## Stan 101 (25 January 2006)

you'll have your day in the sun, Visual.
I never hold for the long term. I keep my profit low and trade often. In and out. I'm actually looking at running a few trades with a view to holding for I, like you have had the same thing happen. The only saving graqce is that i stuck to my method. The next time I let it run could be for the detriment.

cheers,


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## nizar (25 January 2006)

historically, demergers have always created extra shareholder value... for both demerged entities

look at wat happened 2 bhp since it demerged onesteel in 2000?
how abt bhp and bsl in 2002?
and boral and origin energy in 2000?
and csr and rinker in 2003??

all up up and up more than 100%...

agl been heating up lately becoz its closer to demerger, which will be in april...

its AGL energy (proposed retail energy company), analysts thought was a but dry as to where future revenues were coming from and this is why agl fast-tracked the OSH deal, announced recently...

this one is a winner, each agl holder will get a share in both companies post-demerger... hold on 2 it, imo it will do well in the longer-term..


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## mit (27 January 2006)

AGL after their rapid expansion never integrated the billing systems which means a high cost to serve. They are now trying to integrate all of these systems which is a massive and very risky undertaking. For companies of this type efficient systems for billing is everything. Not bill enough customers and you lose your cash flow (one of the problems with one-tel), mis-bill the regulatory chairman's mother and you are a target.

MIT


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## markrmau (21 February 2006)

You don't see this often in the land of Oz.

AGL order for 31,691,759@19.450

About $600M in one go.

(obviously related to aln merger)


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## Prospector (21 February 2006)

Merger or hostile takeover?  Who cares at the moment, my shares are looking just beautiful today!  But am now top heavy in AGL


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## nizar (21 February 2006)

Prospector said:
			
		

> Merger or hostile takeover?  Who cares at the moment, my shares are looking just beautiful today!  But am now top heavy in AGL




yes i agree...

AGL demerger was going to enhance shareholder value anyway, ALN reckon they will pay higher divies - hey im not complaining...

did a bit of research on aust companies in the past that have demerged and the effect on shareprice:

BHP/BSL (jul2002): BHP has since gained 114% and BSL 114%
BHP/OST (oct2000): BHP has since gained 152% and OST 310%
CSR/RIN (mar2003): CSR has gained 94% and RIN 151%
BOR/ORG (feb2000): BOR has gained 321% and ORG 268%

im holding on to AGL long-term...


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## Prospector (21 February 2006)

Except they wont be AGL anymore but ALN!   Yes, my biggest share by a long shot in value but will hang on for the moment!


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## Prospector (21 February 2006)

nizar said:
			
		

> yes i agree...
> 
> AGL demerger was going to enhance shareholder value anyway, ALN reckon they will pay higher divies - hey im not complaining...
> 
> ...




Hey Nizar - thanks for posting in long hand too!


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## GreatPig (21 February 2006)

Yes, a nice thing to behold!

Fortunately I'm still holding 

Cheers,
GP


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## mit (22 February 2006)

There is a difference between the AGL demerger and the other demergers mentioned. The other demergers were largely financial engineering and separation of corporate groups but with a vertically integrated energy company there are many other issues that need to be dealt with. Their demerger is closer to the suggestedTelstra split between wholesale and retail.

AGL already faces an ambitious IT program. AGL unlike Origin (the nearest competitor) never really integrated the businesses they acquired and runs many separate billing systems and the IT program is to finally do the integration. Add to this the probable need to split some of these billing systems into network and retail billing. 

Having been involved in a few billing system integration/separations I know it is tough and a high percentage have gone awry (none of mine   ).

Compare this to Origin which has made an announcement about the friendly merge with Contact. The two strong companies will form an even stronger single company.  Also Origin is to increase dividends (watching Rozella?) (and Origin has none of the IT issues that AGL and will target costs by some small targeted system improvements)

Note that the unfriendly merger ALN/AGL has caused a large jump in their price where the Origin/Contact announcement has made barely a dent. My GUESS is that hedge funds have bought ALN/AGL for some short term gain and will drop the shares if there are any issues with the merger or IT work and that Origin will be slowly acquired by longer term funds.

If I wasn't a TA person (price action rules!) and a longer term holder, I would buy Origin now and buy into ALN/AGL if the sh*t hits the fans and the price drops as I think that what they are doing is good long term but there could be a rocky road ahead.

MIT


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## nizar (22 February 2006)

mit said:
			
		

> There is a difference between the AGL demerger and the other demergers mentioned. The other demergers were largely financial engineering and separation of corporate groups but with a vertically integrated energy company there are many other issues that need to be dealt with. Their demerger is closer to the suggestedTelstra split between wholesale and retail.
> 
> AGL already faces an ambitious IT program. AGL unlike Origin (the nearest competitor) never really integrated the businesses they acquired and runs many separate billing systems and the IT program is to finally do the integration. Add to this the probable need to split some of these billing systems into network and retail billing.
> 
> ...




thanks for your views...

u mention origin is going to increase dividends, so is ALN once merger is complete, see the 11 page AGL announcement released to asx yesterday:

Bob browning ALN CEO: "we believe the alinta proposal will provide agl shareholders with a higher dividend payment than they would have got from AGL's stand-alone demerger"


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## GreatPig (23 April 2006)

Just wondering what people's thoughts are about the Alinta offer now.

I've received the offer form, giving 1.773 Alinta shares for each AGL share. With Alinta's current price of $11, that values AGL shares at $19.50, with their current market price being $18.40.

Alinta's share price has been going sideways for some months now, but if it stayed the same, that would still deliver a premium on the current AGL price.

I think I'll wait until the last few days to decide (offer currently closes 31st May).

Cheers,
GP


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## Prospector (23 April 2006)

Thanks for posting the question - I am also not sure what to do but as you say, at the moment it sounds like a good deal but those last couple of days may be tricky!


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## Prospector (7 June 2006)

At risk of talking to myself  : isnt this just a bizarre scenario at the moment - AGL and Alinta extending both their offers and both recommending that no action be taken!

Talk about process getting in the way of common sense!  Bet that law was designed by a man  :fan


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## Sean K (7 June 2006)

Ha, ha, but absolutely. Don't they both know they are ultimately costing themselves. Boys and their toys! Or tools!


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## Prospector (7 June 2006)

kennas said:
			
		

> Ha, ha, but absolutely. Don't they both know they are ultimately costing themselves. Boys and their toys! Or tools!




Is that the boys that are the tools or the toys  

(Wait til the boys get a sniff of this link....... : )


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## sptrawler (30 March 2021)

AGL appear to be getting their act together, a good move IMO, splitting into retail and generation. As long as generation has enough working capital.








						‘New path’: AGL splits power plants, retail as green shift accelerates
					

AGL will split off its emissions-intensive coal- and gas-fired power plants from its wider business as the shift to renewable energy accelerates.




					www.smh.com.au
				



From the article:
_AGL, which operates coal- and gas-fired power plants and renewable energy generators around the nation, posted a $2.3 billion loss for the first half of 2021.

Mr Redman on Tuesday said “New AGL” would be Australia’s largest multi-product energy retailer, delivering power, gas internet and mobile services to more than 30 per cent of Australian households with a net-zero carbon footprint.

The other company, “PrimeCo”, would include AGL’s coal-fired power stations, gas-fired power stations and renewable energy assets including wind farms.
“The proposed structural separation would give each business the freedom, focus and clarity to executive their own respective strategies and growth agendas, while playing an equally important, but different role, in Australia’s energy transition,” Mr Redman said_.

I don't hold


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## UMike (19 January 2022)

Bit Late to this turn around story.

Still trying to work out what happened to the spike in volume 31/12/21


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## dyna (19 January 2022)

A local fund manager taking a position in AGL, got a mention in the Fin. Review just before Xmas. Can't recall which one, though.
Too late for me, now.


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