Australian utility AGL has rejected an unsolicited bid from a consortium led by Brookfield Asset Management to buy the firm, saying the offer “materially undervalues the company”.
The Brookfield consortium, which includes tech billionaire and climate activist Mike Cannon-Brookes, offered to buy 100 per cent of the company for A$7.50 (US$5.40) per share, valuing the entire company at about A$4.9bn.
That was a 4.7 per cent premium on Friday’s closing share price of A$7.16, and market capitalisation of A$4.7bn.
The acquisition would be likely to hasten the closure of two of the country’s largest coal-fired power stations, speeding up Australia’s already rapid transition to a renewables-dominated grid.
Only last week, AGL’s main competitor Origin announced it would close its last remaining coal plant in 2025, seven years earlier than planned.
AGL is planning to split the company in two, spinning off its coal generation assets into a new company to be…
