AGL Energy Limited (AGK) said it had now acquired a relevant interest in more than 90% of Sydney Gas Limited (SGL) shares. AGL said it intended to compulsorily acquire the remaining SGL shares and would commence the process following the close of the offer period.

The company extended the closing date of the offer to 24 February 2009 to give those SGL shareholders who have not yet accepted AGL’s offer more time to do so.

AGL advised SGL shareholders that if their SGL shares were compulsorily acquired, they would have to wait until at least one month after the close of the offer period to be paid under that process.

“AGL encourages SGL shareholders to either sell their shares onmarket to AGL or accept AGL’s offer prior to the close of the Offer period to ensure they receive payment within three business days,” the company said.

In addition, AGL said it was proposing that Mike Moraza, AGL’s Group General Manager Upstream Gas, be appointed to the SGL board of directors with effect from 11 February 2009.

At 1219 AEDT, AGL Energy shares were up 15c at $13.85, while Sydney Gas shares were flat.