Origin Energy Ltd. , Australia's second-largest power retailer, said on Monday it was buying power retail assets from the Queensland state government for over A$1.2 billion ($938 million).

The company said in a statement that initial funding for the acquisition of Queensland's Sun Retail would include a placement of A$400 million with the balance funded through debt facilities.

Origin said the bid price for Sun Retail was nine times the company's fiscal 2007/08 earnings before interest, tax, depreciation and amortization (EBITDA) and would increase the group's revenues by 29 percent to A$7.6 billion.