AGL abandons Vocus bid after due diligence undertaking

AGL, click energy
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Energy giant AGL has announced it has withdrawn its non-binding, indicative proposal to acquire telco Vocus, ceasing its due diligence undertaking on the company’s financials.

AGL managing director and CEO Brett Redman said, “AGL is exploring investment opportunities across three focus areas: optimising our existing portfolio for performance and value, evolving and expanding our core energy markets offerings, and creating new opportunities with connected customers.

“We believe there will be material opportunities for AGL as energy and data value streams continue to converge and the traditional energy sector accelerates its transformation.

“The approach to Vocus reflected our view that the Vocus asset base has attributes that could support the execution of this strategy and benefit our customers.

“However, we are no longer confident that an acquisition of Vocus at the proposed terms would represent sufficient certainty of creating value for AGL shareholders.

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“We would like to thank the Vocus board and management team for their assistance over recent weeks.”

AGL has withdrawn its non-binding proposal of acquiring all of Vocus’ shares at a price of AU$4.85 per share.  

Vocus CEO Kevin Russell said, “We have great confidence that our strategy and ability to execute our business plan will deliver significant value to our shareholders in the medium to long term.

“There is growing demand for our strategically valuable network assets and we have a substantial opportunity for Vocus Networks to gain market share. This is the core of our business.

“The Vocus management team will now be able to focus all of their attention on realising the opportunity that we have ahead of us.”

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