News: Duet proposes simplified model

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DUET Group (ASX:DUE) has proposed to simplify the group’s structure, after completing a review of the company.

 

The energy utility asset investor says it hopes to reduce the number of stapled entities from six to four and create a corporate arm controlling the group’s equity interests in its business as well as a funding arm holding intra-group debt investments.

 

The company says the proposal will offer a simplified investment proposition for investors.

 

Duet says the proposal would also allow head office to save $1 million per year, but noted the review and the proposal will cost about $10 million to implement.

 

The company says the move will improve working capital with the release of $5 million supporting a licence that would no longer be required.

 

Duet posted a net loss of $45.8 million for the first half of the current financial year.