AGL has rejected a second unsolicited takeover bid from billionaire Mike Cannon-Brookes and Brookfield, which saw a ten per cent increase on their original bid.
Brookfield Asset Management and Mr Cannon-Brookes’ increased their second offer to $8.25 per share, a 75 per cent increase on their first bid a fortnight ago.
AGL’s board met on 6 March and decided to reject the second offer. Brookfield and Mr Cannon-Brookes are expected to walk away after this rejection.
The original takeover proposal would have seen the pair acquire 100 per cent of AGL’s shares and close its coal-fired power stations early.
Canadian company Brookfield Asset Management and Mr Cannon-Brookers’ Grok Ventures originally proposed to acquire AGL for $7.50 per share by way of a scheme arrangement.
The AGL Energy Board stated that both proposals materially undervalued the company on a change of control basis and were not in the best interests of AGL Energy shareholders.