Cooper's Orbost deal 'value dilutive'

From The Aus this arvo:

Cooper Energy's $270m-$330m deal to buy back the Orbost gas plant from APA Energy makes sense but is "value dilutive" and clearly, the seller "got its way on price".

Cooper's significant new debt and equity move, raising $244m at 24.5c per share and refinancing debt into a $400m Sole/Otway facility "overwhelms the positives" of gaining control of Orbost, analysts at Morgans say.

"There is no getting around that raising this magnitude of equity, at such a discounted level, overwhelms the positives in value terms leaving the deal ultimately appearing value dilutive," the note states.