Monday, 17 October 2011

$24.9m energy deal

Canberra Times
8 Oct 2011, Page: 2

Renewable energy company CBD Energy will buy Victorian-based energy retailer Neighbourhood Energy from Alinta Energy for $24.9 million. The deal will give CBD Energy access to Neighbourhood Energy's 65,000 mostly Victorian customers. The acquisition meant the company was now a retailer and generator of renewable energy-or vertically integrated-which positioned it to challenge major energy market players, CBD Energy managing director Gerry McGowan said. Neighbourhood Energy will be able to buy Renewable Energy Certificates generated by CBD Energy, representing extra income. Its shares closed up 1.2¢, or 14.6%, at 9.4¢.