AGL knocks back Liddell Power Station offer

Company News

by Anna Napoli

AGL (ASX:AGL) has knocked back the $250 million offer for its Liddell Power Station.

Last month AGL received an unsolicited non-binding offer from Alinta Energy and Chow Tai Fook Enterprises to buy the coal-fired station in the Hunter Valley.

But, AGL says it won’t proceed further with the offer and that it’s not in the best interests of AGL or its shareholders.

The gas and electricity giant said the offer undervalues future cash flows to AGL of operating the Liddell Power Station until 2022 and repurposing of the site thereafter.

The company has reaffirmed plans to close the station in 2022 despite pressure from the Federal Government to sell, so
it could stay open beyond its planned closure in 2022.

Shares in AGL (ASX:AGL) closed 1.02 per cent lower to $21.29 on Friday.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.