AGL Energy Ltd., Sydney, rejected a second takeover offer from Canadian investment company Brookfield Asset Management and Australian firm Grok Ventures owned by Mike Cannon-Brookes.
The new offer of $8.25/share (Aus.) was a 75 cent per share increase from the original share bid made 2 weeks ago. It was a 10% increase on the original offer that valued AGL at $8 billion (Aus.).
AGL said the latest offer was still well below the fair value of the company, adding that the increased offer was “otherwise materially the same” as the February bid.
The Brookfield was funding about 80% of the bid and it is now expected that the consortium will withdraw from the takeover process.
The 180-year old AGL Energy will now continue its proposed demerger to create two separate companies: Accel Energy to house its New South Wales and Victorian coal-fired power stations and AGL Australia to own the retail business and clean energy assets.
