AGL Energy (ASX:AGL) rejects takeover bid

Company News

by Lauren Evans

AGL Energy (ASX:AGL) has rejected a joint bid from founder of software giant Atlassian Mike Cannon-Brookes and Canadian asset management giant Brookfield to take control of the company.

The offer was unveiled yesterday in an effort to accelerate the shut down of the energy giant’s coal-fired power stations. The offer made over the weekend was valued at $7.50 a share which the board said that it materially undervalued the company, despite it being offered at a premium of 4.7 per cent to AGL’s closing price of $7.16 a share on Friday.

“The proposal does not offer an adequate premium for a change of control and is not in the best interests of AGL Energy shareholders," said AGL chairman Peter Botten.

"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.”  

Shares in AGL Energy (ASX:AGL) are trading 10.9 per cent higher at $7.94. 

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