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Bloomberg
Australian utility AGL Energy Ltd rejected a multibillion-dollar takeover bid from Brookfield Asset Management Inc and technology billionaire Mike Cannon-Brookes, who plan to accelerate the closure of the company’s polluting coal-fired power plants.
Brookfield and Cannon-Brookes’s investment firm Grok Ventures have a $14 billion transition plan to shift AGL to clean energy and “remains optimistic that an agreement can be reached,†the consortium said. AGL shares jumped 11% to close at the highest since July.
“The board should continue to engage with Brookfield and Cannon-Brookes, however they will need to considerably increase the offer if they want to get the investment community onboard, even though we agree with the ideals they propose,†said Jamie Hannah, deputy head of investments and capital markets at Van Eck Associates Corp, which owns shares in AGL.
The company’s own plan to split off its coal assets into a separate unit would deliver better shareholder value, and offers a more responsible path to decarbonisation, the utility said.
Public debate on climate change in Australia and the role of coal, which still provides most of the country’s electricity, intensified after wildfires in late 2019 and early 2020.