AGL rejects takeover offer from Brookfield led consortium
Australian gas and power retailer AGL Energy has rejected a takeover offer from a consortium led by Canada's Brookfield Asset Management, it said on February 21.
The offer is to acquire 100% of the shares in AGL Energy for A$7.50 ($5.4)/share by way of a scheme of arrangement. It values the company at $3.5bn.
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“The proposal does not offer an adequate premium for a change of control and is not in the best interests of AGL Energy shareholders,” AGL Energy chairman Peter Botten said.
“Under the unsolicited proposal the board believes AGL Energy shareholders would be forgoing the opportunity to realise potential future value via AGL Energy’s proposed demerger as both proposed organisations pursue decisive action on decarbonisation,” he added.
The company last year announced plans to demerge into two separate entities that will both be listed on the Australian Securities Exchange.
AGL Energy will become Accel Energy, retaining control of AGL's electricity generation business. The retail arm and the renewable energy business will be under the brand AGL Australia. The demerger is expected by June this year.