Australian utility AGL Energy rejected an improved multibillion-dollar takeover approach from Brookfield Asset Management and billionaire Mike Cannon-Brookes, who wanted to accelerate the firm’s transition to net-zero emissions by more than a decade.
The consortium made a second offer of A$8.25 ($6.08) a share — an 11% premium to Friday’s close of A$7.43, and higher than the A$7.50 tabled last month, Cannon-Brookes said Sunday in a Tweet. He indicated that another proposal probably won’t be forthcoming.
Sydney-based AGL rejected the new offer as too low and the company plans to comment publicly on its reasons on Monday, according to people familiar with the decision, who requested anonymity to discuss private details. The consortium’s earlier, lower offer had valued AGL’s equity at A$5 billion.
Brookfield insisted it could generate more value by abandoning AGL’s existing strategy, and pledged to deliver a A$20 billion transition plan to close down the coal plants more quickly and replace them with renewable energy.
Read more: BNN Bloomberg
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